5 Best-Performing Growth Mutual Funds This Year
Ask any advisor and he or she will tell you that clients cant get enough of long-term growth mutual funds because they provide an opportunity to get a small slice of many fast-growing companies and the portfolio-igniting potential they promise without having to place comparatively large bets on just a couple of up-and-comers.
Of course, as with any other growth investment, the expected rewards dont come without a higher degree of risk. Some fund managers are better (or luckier) than others.
Heres an interactive slide show featuring the five best-performing growth mutual funds so far this year.
Fund Family: Artisan Funds
Percentage Gain in 2012: 17.6%
Top Portfolio Holdings: Google, Apple, Monsanto and Starbucks.
Profile: Focuses on investing in equity securities issued by domestic and foreign companies. The fund invests in both mature economies and emerging markets and may purchase depository receipts. The growth mutual fund has a three-year annualized return of 32.01%.
Fund Family: Sit Mutual Funds
Percentage Gain in 2012: 16%
Top Portfolio Holdings: Ecolab, TJX, Cognizant Tech Solutions and Cummins Inc.
Profile: Seeks to maximize capital growth over the long term. The fund invests the majority of its assets in common stocks of companies whose market capitalizations are between $2 billion and $15 billion. It focuses on investing in domestic growth-oriented small to mid-cap companies. The growth mutual fund has a three-year annualized return of 28.6%.
The growth mutual fund has a minimum initial investment of $5,000 and an expense ratio of 1.20% compared to a category average of 1.37%.
Fund Family: Fidelity
Percentage Gain in 2012: 15.9%
Top Portfolio Holdings: Apple, Exxon Mobil, Google and Salesforce.com.
Profile: Focuses on investing in common stocks. The fund selects companies using fundamental analysis and on the basis of their growth potential. It invests in both domestic and foreign firms. The growth mutual fund has a three-year annualized return of 30.56%.
Steven S. Wymer is the fund manager and has managed this growth mutual fund since 1997.
Fund Family: GardnerLewis
Percentage Gain in 2012: 14.9%
Top Portfolio Holdings: Apple, Humana, EOG Resouces and Google.
Profile: Seeks capital growth. A minimum of 90% of its assets are utilized to purchase equity securities. A large share of these securities is invested in largest 1,000 domestic companies on the basis of market capitalization. Common and preferred stock and related convertible securities constitute its major investments. The growth mutual fund has a three-year annualized return of 20.81%.
As of December 2011, this growth mutual fund held 48 issues, with 5.87% of its total assets invested in Apple, Inc.
Fund Family: Vanguard Group
Percentage Gain in 2012: 14.7%
Top Portfolio Holdings: Apple, Qualcomm, Google and EOG Resources.
Profile: Invests primarily in large cap domestic companies with significant growth potential. The stocks purchased must be attractively priced relative to their projected earnings. The fund utilizes the services of several investment advisors. The growth mutual fund has a three-year annualized return of 24.74%.
The growth mutual fund has a minimum initial investment of $3,000 and an expense ratio of 0.44% compared to a category average of 1.28%.
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