Top 5 Growth Mutual Funds - Best of Funds

Investors who choose capital growth over current income would do well to consider growth funds. This category of funds attempts to ensure maximum possible capital gains by investing in companies whose value is expected to increase significantly in the future. Tolerance for a reasonable amount of risk and a long-term approach to investing is required to realize the full potential of these funds. However, the risk involved is much lower when compared to sectoral funds and may be reduced further by funds with a conservative approach.

Below we will share with you 5 top rated growth mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all growth funds, then click here.

Legg Mason ClearBridge Large Cap Growth A (SBLGX) seeks long-term capital appreciation. The majority of the fund's assets are utilized to purchase equity securities or instruments with similar features. The companies invested in must be identical to those included in the Russell 1000 Growth Index. The growth mutual fund returned 33.67% in the last one year period.

Peter Bourbeau is the fund manager and he has managed this growth mutual fund since 2009.

Reynolds Blue Chip Growth (RBCGX) invests the majority of its assets in common stocks of companies with the potential for superior growth. The companies selected must be renowned in their respective sectors and have a minimum market-cap of $1 billion. The growth mutual fund has a three year annualized return of 22.66%

The growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.80% compared to a category average of 1.31%.

Loomis Sayles Mid Cap Growth A (LAGRX) seeks capital growth over the long term. At least 80% of its assets are invested in equity securities. These securities must be issued by companies whose capitalizations are within the range of the Russell Midcap Growth Index .The growth mutual fund has a five year annualized return of 6.79%

Philip C. Fine is the fund manager and he has managed this growth mutual fund since 1999.

Virtus Strategic Growth A (PSTAX) invests at least 65% of its assets in stocks of large cap companies. These firms must have market capitalizations which lie within the range of the Russell 1000 Growth Index. The growth mutual fund returned 20.92% in the last one year period.

As of February 2011, this growth mutual fund held 78 issues, with 3.18% of its total assets invested in Apple, Inc.

Invesco Van Kampen Mid Cap Growth A (VGRAX) seeks capital growth. It invests heavily in mid-cap growth companies. A large proportion of its assets are utilized to purchase equity securities such as common stocks. The growth mutual fund has a ten year annualized return of 7.56%.

The growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.24% compared to a category average of 1.41%.

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/mutualfunds/