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3 Large-Cap Growth Funds to Buy on Soaring Consumer Sentiment
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Consumers are a lot more optimistic about the nation’s economy than they were a few months ago. The University of Michigan’s Consumer Sentiment Index rose to a final reading of 79.4 in March, the highest level since July 2021 and ahead of estimates of 76.5.
The positive sentiment is being driven by expectations that inflation, which has eased substantially over the past year, will cool further, and the economy will have a softer landing than expected earlier.
The survey's measurement of one-year inflation expectations dropped to 2.9% in March, down from 3% in February. Also, the five-year inflation expectations declined to 2.8% in March from 2.9% in the previous month.
The Federal Reserve indicated at the end of last year that it would end its monetary tightening campaign after increasing interest rates by 525 basis points since March 2022 to curb 40-year-high inflation.
The Federal Reserve’s benchmark policy rate is in the range of 5.25-5.5%. However, the central bank has left interest rates unchanged since July 2023. Last month, the Federal Reserve assured that it is on track for three rate cuts of 25 basis points each by the end of this year.
The optimism surrounding the rate cuts is further boosting consumer sentiment as lower borrowing rates bode well for the broader economy.
3 Best Choices
We have, thus, selected three large-cap mutual funds, namely T. Rowe Price Blue Chip Growth (TRBCX - Free Report) , Schwab Select Large Cap Growth (LGILX - Free Report) , and Bridges Investment Fund (BRGIX - Free Report) , carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from such factors. These funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors in identifying potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
T. Rowe Price Blue Chip Growth fund seeks long-term capital growth. TRBCX invests at least 80% of net assets in common stocks of large and medium-sized, blue-chip companies that have the potential for above-average growth in earnings and are well-established in their respective industries.
T. Rowe Price Blue Chip Growth fund has a track of positive total returns for over 10 years. Specifically, TRBCX’s returns over the three and five-year benchmarks are 6.2% and 13.1%, respectively. The fund has an annual expense ratio of 0.70%. TRBCX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
Schwab Select Large Cap Growth fund invests most of its assets in equity securities of large-cap companies. LGILX advisors also invest in foreign equity securities.
Schwab Select Large Cap Growth fund has a track of positive total returns for over 10 years. Specifically, LGILX’s returns over the three and five-year benchmarks are 7.2% and 14.7%, respectively. The annual expense ratio of 0.74% is lower than the category average of 0.94%. LGILX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
Bridges Investment Fund’s primary investment objective is long-term capital growth, with a secondary objective of generating moderate investment income. BRGIX seeks to achieve its objectives by investing primarily in a diversified portfolio of common stocks and convertible securities that the fund management believes offers the potential for increased earnings and dividends over time.
Bridges Investment Fund has a track of positive total returns for over 10 years. Specifically, BRGIX’s returns over the three and five-year benchmarks are 13.1% and 17%, respectively. The fund has an annual expense ratio of 0.75%. BRGIX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
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3 Large-Cap Growth Funds to Buy on Soaring Consumer Sentiment
Consumers are a lot more optimistic about the nation’s economy than they were a few months ago. The University of Michigan’s Consumer Sentiment Index rose to a final reading of 79.4 in March, the highest level since July 2021 and ahead of estimates of 76.5.
The positive sentiment is being driven by expectations that inflation, which has eased substantially over the past year, will cool further, and the economy will have a softer landing than expected earlier.
The survey's measurement of one-year inflation expectations dropped to 2.9% in March, down from 3% in February. Also, the five-year inflation expectations declined to 2.8% in March from 2.9% in the previous month.
The Federal Reserve indicated at the end of last year that it would end its monetary tightening campaign after increasing interest rates by 525 basis points since March 2022 to curb 40-year-high inflation.
The Federal Reserve’s benchmark policy rate is in the range of 5.25-5.5%. However, the central bank has left interest rates unchanged since July 2023. Last month, the Federal Reserve assured that it is on track for three rate cuts of 25 basis points each by the end of this year.
The optimism surrounding the rate cuts is further boosting consumer sentiment as lower borrowing rates bode well for the broader economy.
3 Best Choices
We have, thus, selected three large-cap mutual funds, namely T. Rowe Price Blue Chip Growth (TRBCX - Free Report) , Schwab Select Large Cap Growth (LGILX - Free Report) , and Bridges Investment Fund (BRGIX - Free Report) , carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from such factors. These funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors in identifying potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
T. Rowe Price Blue Chip Growth fund seeks long-term capital growth. TRBCX invests at least 80% of net assets in common stocks of large and medium-sized, blue-chip companies that have the potential for above-average growth in earnings and are well-established in their respective industries.
T. Rowe Price Blue Chip Growth fund has a track of positive total returns for over 10 years. Specifically, TRBCX’s returns over the three and five-year benchmarks are 6.2% and 13.1%, respectively. The fund has an annual expense ratio of 0.70%. TRBCX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
Schwab Select Large Cap Growth fund invests most of its assets in equity securities of large-cap companies. LGILX advisors also invest in foreign equity securities.
Schwab Select Large Cap Growth fund has a track of positive total returns for over 10 years. Specifically, LGILX’s returns over the three and five-year benchmarks are 7.2% and 14.7%, respectively. The annual expense ratio of 0.74% is lower than the category average of 0.94%. LGILX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
Bridges Investment Fund’s primary investment objective is long-term capital growth, with a secondary objective of generating moderate investment income. BRGIX seeks to achieve its objectives by investing primarily in a diversified portfolio of common stocks and convertible securities that the fund management believes offers the potential for increased earnings and dividends over time.
Bridges Investment Fund has a track of positive total returns for over 10 years. Specifically, BRGIX’s returns over the three and five-year benchmarks are 13.1% and 17%, respectively. The fund has an annual expense ratio of 0.75%. BRGIX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>