Growth funds offer incremental gains on capital by investing in stocks of companies that are projected to rise in value over the long term. However, a relatively higher tolerance for risk is a prerequisite other than the willingness to park money for an extended period while investing in these securities. This is because these may experience relatively greater fluctuation than the other fund classes.
Additionally, large-cap funds are ideal investment options for those seeking a high-return potential accompanied by lesser risk than what small-cap and mid-cap funds bear. These funds have exposure to large-cap stocks with a long-term performance history, assuring more stability than what mid or small caps offer.
Below, we share with you three large-cap growth mutual funds, namely BlackRock Exchange Portfolio BlackRock Class STSEX, Eaton Vance-Atlanta Capital Focused Growth EILGX and BNY Mellon Large Cap Securities Fund DREVX. 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.
BlackRock Exchange Portfolio BlackRock Class seeks minimum recognition of capital gain by investing in a well-diversified portfolio of common stocks or convertible securities mostly with medium or large market capitalization companies. STSEX advisors can also invest in companies irrespective of any market capitalization.
BlackRock Exchange Portfolio BlackRock Class has three-year annualized returns of 10.6%. As of the end of September 2022, STSEX had 25 issues and 28.33% of its assets were invested in Microsoft Corporation.
Eaton Vance-Atlanta Capital Focused Growth invests most of its net assets in equity common stocks of 20 to 35 companies mostly with large market capitalization. EILGX advisors mostly choose on invest in companies having market capitalizations that rank among the top 1,000 U.S. companies.
Eaton Vance-Atlanta Capital Focused Growthhas three-year annualized returns of 9.8%. EILGX has an expense ratio of 0.78% compared with the category average of 0.99%.
BNY Mellon Large Cap Securities Fund seeks to create a broadly diversified portfolio of growth stocks, value stocks and sometimes both by investing most of its assets along with borrowings if any in equity securities of large capitalization companies. DREVX advisors choose to invest in stocks based on fundamental analysis factors.
BNY Mellon Large Cap Securities Fundhas three-year annualized returns of 9.8%. Matt Jenkin has been the fund manager of DREVX since April 2020.
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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