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3 Large-Cap Growth Funds to Buy as Fed Gears Up for Rate Cuts
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Wall Street has resumed its rally as investors are trying to move on from the sharp selloff earlier this month triggered by recession fears. All three major indexes ended in positive territory last week, with the Dow, the S&P 500 and the Nasdaq closing 1.3%, 1.5% and 1.4% higher, respectively.
On Aug 26, the Dow extended its rally, rising 0.2%, to close at a record high of 41,240.52 points. The Wall Street rally is being fueled by hopes that the Federal Reserve will finally start its rate-cut cycle in September.
Investing in large-cap growth funds like Fidelity Contrafund (FCNTX - Free Report) , Janus Henderson Research A (JRAAX - Free Report) and T. Rowe Price Lrg Cp Gr I (TRLGX - Free Report) thus seems to be a wise decision.
Fed Gears up for Rate Cuts
On Aug 23, Federal Reserve Chairman Jerome Powell indicated that rate cuts were on the horizon during his speech in Jackson Hole, WY.
Although Powell didn’t signal when or how big the rate cuts would be, his dovish stance gave a boost to investors’ confidence.
The Fed increased interest rates by 525 basis points to take interest rates to a 23-year-high in the range of 5.25-5.5% in its bid to curb inflation. Inflation has since declined substantially and the Federal Reserve is finally confident about starting its easing cycle.
3 Best Large-Cap Growth Funds
Lower borrowing costs typically benefit growth-oriented assets, such as technology and consumer discretionary stocks. We have selected three such large-cap growth funds that are poised to gain from the above 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 Contrafund seeks capital appreciation. FCNTX invests primarily in the common stock of companies whose value the management believes is not fully recognized by the public.
Fidelity Contrafund has a track of positive total returns for over 10 years. Specifically, FCNTX’s returns over the three and five-year benchmarks are 9.6% and 16.8%, respectively. FCNTX has an annual expense ratio of 0.42%, which is lower than the category average of 0.94%.
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 8.7% and 16%, respectively. The fund’s annual expense ratio is 0.83%.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
T. Rowe Price Lrg Cp Gr I fund seeks to provide long-term capital appreciation through investments in common stocks of growth companies. TRLGX normally invests at least 80% of net assets in the common stocks of large companies.
T. Rowe Price Lrg Cp Gr I fund has a track of positive total returns for over 10 years. Specifically, TRLGX’s returns over the three and five-year benchmarks are 5.4% and 15.9%, respectively. The annual expense ratio of 0.56% is lower than the category average of 0.94%. TRGLX 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 Fed Gears Up for Rate Cuts
Wall Street has resumed its rally as investors are trying to move on from the sharp selloff earlier this month triggered by recession fears. All three major indexes ended in positive territory last week, with the Dow, the S&P 500 and the Nasdaq closing 1.3%, 1.5% and 1.4% higher, respectively.
On Aug 26, the Dow extended its rally, rising 0.2%, to close at a record high of 41,240.52 points. The Wall Street rally is being fueled by hopes that the Federal Reserve will finally start its rate-cut cycle in September.
Investing in large-cap growth funds like Fidelity Contrafund (FCNTX - Free Report) , Janus Henderson Research A (JRAAX - Free Report) and T. Rowe Price Lrg Cp Gr I (TRLGX - Free Report) thus seems to be a wise decision.
Fed Gears up for Rate Cuts
On Aug 23, Federal Reserve Chairman Jerome Powell indicated that rate cuts were on the horizon during his speech in Jackson Hole, WY.
Although Powell didn’t signal when or how big the rate cuts would be, his dovish stance gave a boost to investors’ confidence.
The Fed increased interest rates by 525 basis points to take interest rates to a 23-year-high in the range of 5.25-5.5% in its bid to curb inflation. Inflation has since declined substantially and the Federal Reserve is finally confident about starting its easing cycle.
3 Best Large-Cap Growth Funds
Lower borrowing costs typically benefit growth-oriented assets, such as technology and consumer discretionary stocks. We have selected three such large-cap growth funds that are poised to gain from the above 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 Contrafund seeks capital appreciation. FCNTX invests primarily in the common stock of companies whose value the management believes is not fully recognized by the public.
Fidelity Contrafund has a track of positive total returns for over 10 years. Specifically, FCNTX’s returns over the three and five-year benchmarks are 9.6% and 16.8%, respectively. FCNTX has an annual expense ratio of 0.42%, which is lower than the category average of 0.94%.
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 8.7% and 16%, respectively. The fund’s annual expense ratio is 0.83%.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
T. Rowe Price Lrg Cp Gr I fund seeks to provide long-term capital appreciation through investments in common stocks of growth companies. TRLGX normally invests at least 80% of net assets in the common stocks of large companies.
T. Rowe Price Lrg Cp Gr I fund has a track of positive total returns for over 10 years. Specifically, TRLGX’s returns over the three and five-year benchmarks are 5.4% and 15.9%, respectively. The annual expense ratio of 0.56% is lower than the category average of 0.94%. TRGLX 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 >>