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3 Large-Cap Growth Funds to Buy as Inflation Eases in May
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Inflation cooled further in May in a big sigh of relief to investors and the Federal Reserve. The personal consumption expenditure (PCE) price index, the Federal Reserve’s preferred inflation gauge, held steady sequentially in May after increasing 0.3% in April.
On a year-over-year basis, the PCE index climbed 2.6% in May after rising 2.7% in the prior month. Core PCE, which strips out the volatile food and energy components, increased marginally by 0.1% sequentially in May following an upwardly revised 0.3% increase in April.
Year over year, core PCE increased 2.6% in May after rising 2.8% in April.
Inflation declined sharply in 2023 after the Federal Reserve hiked interest rates by 525 basis points since March 2022 to curb 40-year-high inflation. This raised hopes at the beginning of 2024 that the Fed would soon go ahead with multiple rate cuts.
The optimism faded soon as inflation resumed its climb, increasing sharply in the first quarter. However, it finally started showing signs of cooling in April, which has once again made investors optimistic.
Also, Federal Reserve Chairman Jerome Powell, in his June post-FOMC statement, indicated that the rate hike regime is likely over and the central bank is planning one 25 basis point rate cut this year.
However, markets are pricing in two rate cuts in 2024 after the positive May inflation data, with the first rate cut likely to be effected in September. Lower rate cuts bode well for the broader economy.
3 Best Choices
We have, thus, selected three large-cap mutual funds such as Fidelity Series Blue Chip Growth Fund (FSBDX - Free Report) , Fidelity Blue Chip Growth K6 (FBCGX - Free Report) and Janus Henderson Research A (JRAAX - Free Report) , carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), that are poised to gain from such factors. Moreover, these funds have encouraging three and five-year returns. 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).
Fidelity Series Blue Chip Growth Fund invests in common stocks of blue-chip companies that generally have large or medium-market capitalizations. FSBDX is non-diversified.
Fidelity Series Blue Chip Growth Fund (has a track of positive total returns for over 10 years. Specifically, FSBDX’s returns over the three and five-year benchmarks are 10.4% and 23%, respectively. FSBDX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.01%.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
Fidelity Blue Chip Growth K6 fund invests most of its net assets in common stocks of blue-chip companies, according to Fidelity Management & Research Company LLC. FBCGX advisors generally choose to invest in large or medium market-capitalization companies.
Fidelity Blue Chip Growth K6 fund has a track of positive total returns for over 10 years. Specifically, FBCGX’s returns over the three and five-year benchmarks are 9.6% and 22.8%, respectively. FBCGX has an annual expense ratio of 0.45% and 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.
Janus Henderson Research A fund is part of the Large Cap Growth mutual fund category. JRAAX invests in many large U.S. companies that are expected to grow much faster than the other large-cap stocks.
Janus Henderson Research A fund has had a track of positive total returns for over 10 years. Specifically, JRAAX’s returns over the three and five-year benchmarks are 9.8% and 16.9%, respectively. The fund’s annual expense ratio is 0.81%. JRAAX 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 as Inflation Eases in May
Inflation cooled further in May in a big sigh of relief to investors and the Federal Reserve. The personal consumption expenditure (PCE) price index, the Federal Reserve’s preferred inflation gauge, held steady sequentially in May after increasing 0.3% in April.
On a year-over-year basis, the PCE index climbed 2.6% in May after rising 2.7% in the prior month. Core PCE, which strips out the volatile food and energy components, increased marginally by 0.1% sequentially in May following an upwardly revised 0.3% increase in April.
Year over year, core PCE increased 2.6% in May after rising 2.8% in April.
Inflation declined sharply in 2023 after the Federal Reserve hiked interest rates by 525 basis points since March 2022 to curb 40-year-high inflation. This raised hopes at the beginning of 2024 that the Fed would soon go ahead with multiple rate cuts.
The optimism faded soon as inflation resumed its climb, increasing sharply in the first quarter. However, it finally started showing signs of cooling in April, which has once again made investors optimistic.
Also, Federal Reserve Chairman Jerome Powell, in his June post-FOMC statement, indicated that the rate hike regime is likely over and the central bank is planning one 25 basis point rate cut this year.
However, markets are pricing in two rate cuts in 2024 after the positive May inflation data, with the first rate cut likely to be effected in September. Lower rate cuts bode well for the broader economy.
3 Best Choices
We have, thus, selected three large-cap mutual funds such as Fidelity Series Blue Chip Growth Fund (FSBDX - Free Report) , Fidelity Blue Chip Growth K6 (FBCGX - Free Report) and Janus Henderson Research A (JRAAX - Free Report) , carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), that are poised to gain from such factors. Moreover, these funds have encouraging three and five-year returns. 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).
Fidelity Series Blue Chip Growth Fund invests in common stocks of blue-chip companies that generally have large or medium-market capitalizations. FSBDX is non-diversified.
Fidelity Series Blue Chip Growth Fund (has a track of positive total returns for over 10 years. Specifically, FSBDX’s returns over the three and five-year benchmarks are 10.4% and 23%, respectively. FSBDX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.01%.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
Fidelity Blue Chip Growth K6 fund invests most of its net assets in common stocks of blue-chip companies, according to Fidelity Management & Research Company LLC. FBCGX advisors generally choose to invest in large or medium market-capitalization companies.
Fidelity Blue Chip Growth K6 fund has a track of positive total returns for over 10 years. Specifically, FBCGX’s returns over the three and five-year benchmarks are 9.6% and 22.8%, respectively. FBCGX has an annual expense ratio of 0.45% and 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.
Janus Henderson Research A fund is part of the Large Cap Growth mutual fund category. JRAAX invests in many large U.S. companies that are expected to grow much faster than the other large-cap stocks.
Janus Henderson Research A fund has had a track of positive total returns for over 10 years. Specifically, JRAAX’s returns over the three and five-year benchmarks are 9.8% and 16.9%, respectively. The fund’s annual expense ratio is 0.81%. JRAAX 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 >>