Large-cap funds are ideal investment options for those who seek high returns as well as a lesser risk than small-cap and mid-cap funds. These funds have exposure to large-cap stocks with a long-term performance history, assuring more stability than mid or small caps.
Additionally, growth funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms, the value of which is projected to rise over the long term. However, a relatively higher tolerance to risk and the willingness to park funds for the longer term are necessary when investing in these securities. This is because these may experience relatively greater fluctuation than the other fund classes.
Below, we share with you three top-ranked large-cap growth mutual funds, namely MFS Massachusetts Investors Growth Stock Fund MIGFX, T. Rowe Price All-Cap Opportunities Fund PRWAX and AQR Large Cap Momentum Style Fund AMOMX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
MFS Massachusetts Investors Growth Stock Fund seeks capital appreciation by investing the majority of its assets in common stocks and other securities that represent an ownership interest in a company. MIGFX advisors usually invest in stocks they believe have above-average earnings growth potential. The fund has returned 7.6% over the past three years.
As of May 2022, MIGFX held 58 issues, with 11.3% of its assets invested in Microsoft Corp.
T. Rowe Price All-Cap Opportunities Fund aims for long-term capital growth. PRWAX invests in common stocks of U.S. companies operating in the fastest-growing, or potentially fastest-growing sectors of the economy. The fund has returned 12.4% over the past three years.
Justin White has been one of the fund managers of PRWAX since 2016.
AQR Large Cap Momentum Style Fund seeks long-term capital appreciation by investing primarily in equity or equity-related securities of large-cap companies traded on a principal U.S. exchange or over-the-counter market that it believes have positive momentum. AMOMX invests the majority of its net assets in large-cap U.S. companies. The fund has returned 8.4% over the past three years.
AMOMX has an expense ratio of 0.40% compared with the category average of 0.99%.
To view the Zacks Rank and the past performance of all large-cap growth mutual funds, investors can click here to see the complete list of large-cap growth mutual funds.
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