Growth mutual funds refer to a type of mutual fund that invests in stocks of companies with high growth potential. These companies are expected to grow at a faster pace compared to other companies in the market, providing investors with an opportunity to earn higher returns.
Investing in growth mutual funds can be a great way for investors to diversify their portfolio and potentially earn higher returns. However, as with any investment option, it is important to understand the risks involved before investing your hard-earned money.
In this post, we will discuss the top 15 growth mutual funds that you should consider adding to your portfolio.
1. T. Rowe Price Blue Chip Growth Fund (TRBCX)
The T. Rowe Price Blue Chip Growth Fund has consistently delivered impressive results over the years, making it one of the best-performing growth mutual funds available today. This fund invests in large-cap companies that have strong fundamentals and long-term business prospects.
2. Fidelity Contrafund (FCNTX)
The Fidelity Contrafund is another popular choice among investors looking for exposure to growth stocks. The fund’s manager focuses on identifying undervalued stocks within industries that are likely to experience strong growth over time.
3. Vanguard Growth Index Fund (VIGRX)
The Vanguard Growth Index Fund tracks the performance of large-cap growth stocks listed on major U.S exchanges such as NASDAQ and NYSE Arca. The fund’s low expense ratio makes it an attractive option for cost-conscious investors seeking exposure to high-growth companies.
4. American Funds New Perspective Fund (ANWPX)
The American Funds New Perspective Fund invests primarily in multinational corporations outside North America where significant portions of earnings or assets come from emerging markets or developing countries
5.Janus Henderson Global Technology and Innovation Fund (JAGTX)
This fund offers exposure solely towards technology sector which includes software development, semiconductors, cloud computing etc.The fund has consistently outperformed the S&P 500 over the years.
6. T. Rowe Price Growth Stock Fund (PRGFX)
The T. Rowe Price Growth Stock Fund invests in companies that exhibit strong earnings growth potential and have a dominant market position. The fund has a long-term focus, which makes it an attractive option for investors who are willing to hold their investments for an extended period.
7. BlackRock Mid-Cap Growth Equity Fund (BMGAX)
The BlackRock Mid-Cap Growth Equity Fund focuses on investing in mid-sized companies with high-growth potential across various sectors, including technology, healthcare, and consumer discretionary.
8.T.Rowe Price Science & Technology Fund (PRSCX)
This fund is another technology-focused mutual fund that has delivered impressive returns over the years by investing in innovative companies within the tech industry such as Amazon and Alibaba Group
9.Fidelity Blue Chip Growth Fund(FBGRX)
Fidelity Blue Chip Growth invests primarily in common stocks of large cap U.S Companies like Facebook Inc., Microsoft Corp., Visa etc.This mutual fund requires a minimum investment of $2,500
10.Eaton Vance Atlanta Capital SMID-Cap Fund(EISMX)
Eaton Vance Atlanta Capital SMID-Cap seeks long term capital appreciation by investing mainly in small to medium sized US Companies where its portfolio managers identify growth prospects along with improving fundamentals.
11.Invesco Oppenheimer Global Opportunities Fund(OPGSX)
Invesco Oppenheimer Global Opportunities invests primarily in equity securities of issuers located throughout the world through investments into emerging markets or developed markets.The mutual fund invests heavily into Information technology sector.
12.Vanguard International Growth(VWIGX)
Vanguard International focuses upon foreign stocks mostly from developed countries other than US.It offers diversification and exposure towards global economies rather being limited only towards US.However,it also exposes investor towards currency risk which can be more volatile than stock market.
13.T.Rowe Price Small-Cap Stock Fund(PRDSX)
This fund seeks long-term growth of capital by investing in common stocks of small companies which have high potential for long term growth.The mutual fund requires a minimum investment of $2,500
14. Columbia Acorn Fund(LACAX)
Columbia Acorn invests primarily in common stocks of US Companies with a strong domestic focus.It mostly focuses on small and mid-sized companies that are not widely covered by Wall Street analysts.
15. Fidelity OTC Portfolio(FOCPX)
Fidelity OTC Portfolio invests primarily in equity securities, principally common stocks, of companies whose value FMR believes is not fully recognized by the public.This mutual fund has performed consistently well over the years.
In conclusion, investing in growth mutual funds can be an excellent way to diversify your portfolio and potentially earn higher returns. However, it’s important to understand the risks involved before investing your money. Before making any investment decisions, consider consulting with a financial advisor who can help guide you towards the best options for your specific needs and goals.