Growth Mutual funds are the natural choice for those investors who choose capital growth over the long-term in place of dividend payouts. This category of mutual funds focus on returning a significant amount of capital growth by parking their funds in companies whose value is expected to increase 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 growth mutual funds are subject to greater volatility than other fund types.
Below we will share with you the 5 best performing growth mutual funds year to date. To view the Zacks Rank and past performance of all growth funds, then click here.
| Mutual Fund | Zacks Rank | Total Return YTD |
| Weitz Partners III Opportunity | #1 Strong Buy | 8.9% |
| Hussman Strategic Growth | #1 Strong Buy | 5.2% |
| Sequoia Fund | #1 Strong Buy | 4.0% |
| Delaware Mid Cap Growth A | #1 Strong Buy | 2.9% |
| Bryce Capital Growth | #1 Strong Buy | 2.5% |
Weitz Partners III Opportunity (WPOPX) invests heavily in common stocks and related convertible securities. It may invest in other investment companies including exchange traded funds. It purchases equity securities of companies of all sizes including small-cap firms. It is non-diversified and may invest in put and call options. The fund returned 30.73% over the last one year period.
The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.23% compared to a category average of 1.11%.
Hussman Strategic Growth (HSGFX) invests in securities which display favorable valuations accompanied by suitable market action. The fund utilizes estimates of expected future growth rates and positive surprises in earnings by Wall Street analysts to decide on valuation. Price behavior and trading volumes are used to evaluate suitable market action. It is a no-load fund.
This growth mutual fund has a ten year annualized return of 8.27%.
Sequoia (SEQUX) seeks capital appreciation over the long term. The fund invests heavily in common stocks which are priced attractively compared to their underlying value and have superior growth potential. It primarily purchases domestic securities but may also invest in foreign securities. The fund returned 17.46% over the last one year period.
Robert D. Goldfarb is the fund manager and he has managed this growth mutual fund since 1998.
Delaware Smid Cap Growth A (DFCIX) invests primarily in medium-sized companies. The fund acquires common stocks of companies whose market capitalizations are identical to firms included in the Russell 2500 Growth Index. It also invests in related convertible securities and prominent firms with growth potential. The fund has a five year annualized return of 2.45%.
As of June 2010, this growth fund held 29 issues, with 5.06% of its total assets invested in SBA Communications Corporation.
Bryce Capital Growth (BCFGX) seeks capital growth. The majority of its assets are invested in a wide range of domestic and foreign equity securities. It focuses on investing in large and mid-cap companies, but may also invest in smaller firms. Up to half of its assets may be used to purchase foreign securities traded on domestic exchanges. The fund returned 27.24% over the last one year period.
The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.25% compared to a category average of 1.47%.
To view the Zacks Rank and past performance of all growth mutual funds, then click here.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfund/
