Top 10 Best Large Cap Growth Stock Mutual Fund: Domestic Equity Funds Series

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Intro

Investing in large companies can be done several ways. One of the common and straight forward ways is investing in mutual fund. There are different types of large companies such as large growth company, large blend company and large value company. In this article, I’ll focus on large growth stock mutual fund. Large growth fund is part of US domestic mutual fund family. The large growth funds invest in US big companies that are projected to grow faster than other large cap stocks. Most of these funds focus on companies in rapidly expanding industries whether in domestic or international or emerging markets. Some of the large growth companies include Apple (Ticker: APPL), Google (Ticker: GOOG), Visa (Ticker: V), and more.

How to spot a growth company:

  • The business generates significant positive cash flows or earnings,
  • It has very profitable reinvestment opportunities
  • It pays little to no dividends to stockholders
  • Use the earning profit to invest in its growing business
  • You will notice this company being mentioned in TV or magazine such as CNBC, Bloomberg, CNN, Time Magazine, and Wall Street Journal (WSJ)


Invest in Large Growth Fund Criteria

How did I select these large growth equity funds? The first choice is looking at the total asset of the funds. I would prefer big asset underlying the stock mutual funds. Big asset means lot of confident by institutional investors and retail investors to invest in this fund. Institutional investors may include some big pension entities such as California Public Employees' Retirement System (CalPERS), hedge fund, and more. Retail investors include small investors, company, etc. The second choice is the fund ranking, I would prefer to use the Morningstar rating hence it is well known and has been used by investment community. The fund should have 3 or more stars of Morningstar rating. With 3 or more stars, the funds usually have performed very well under any market condition. These large growth equity funds should perform better than its competition and its index benchmark. Most of these large growth equity funds also have many holdings in various big companies in USA (US Stocks).

Top 10 Best Large Growth Stock Fund:

  1. American Funds Growth Fund of America
  2. Fidelity Contrafund
  3. Fidelity Growth Company
  4. Vanguard PRIMECAP
  5. T. Rowe Price Growth Stock
  6. American Funds AMCAP A
  7. Vanguard Growth Index
  8. Fidelity Advisor New Insights
  9. Fidelity Blue Chip Growth
  10. T. Rowe Price Blue Chip Growth


Best Large Growth Equity Fund Info

(click column header to sort results)
No  
Mutual Funds Description  
Ticker  
Yield  
Expense ratio  
M* Rating  
Total Asset (Bil)  
Min. To Invest  
1
American Funds Growth Fund of Amer
AGTHX
0.73%
0.69%
3
156
$250
2
Fidelity Contrafund
FCNTX
0.16%
1.01%
5
72
$2,500
3
Fidelity Growth Company
FDGRX
0.15%
0.93%
4
35
$2,500
4
Vanguard PRIMECAP
VPMCX
0.71%
0.45%
5
28
$25,000
5
T. Rowe Price Growth Stock
PRGFX
0.16%
0.73%
4
23
$2,500
6
American Funds AMCAP A
AMCPX
0.45%
0.78%
4
20
$250
7
Vanguard Growth Index
VIGRX
1.03%
0.28%
4
18
$3,000
8
Fidelity Advisor New Insights
FNIAX
0.00%
1.18%
4
14
$2,500
9
Fidelity Blue Chip Growth
FBGRX
0.13%
0.93%
4
13
$2,500
10
T. Rowe Price Blue Chip Growth
TRBCX
0.10%
0.81%
4
11
$2,500
11
Harbor Capital Appreciation
HCAIX
0.00%
1.06%
3
10
$2,500
12
Janus Twenty D
JNTFX
0.00%
0.86%
3
9
$2,500
13
Vanguard Capital Opportunity
VHCOX
0.31%
0.50%
4
8
$25,000
14
Vanguard Morgan Growth
VMRGX
0.64%
0.48%
3
8
$3,000
Updated on 1/1/2011

1. American Funds The Growth Fund of America

American Funds mutual funds are very popular among the institutional investors. One can find any single American funds being offered in its retirement account such as IRA or 401k. American Funds Growth Fund of America fund seeks to provide growth of capital. It also can invest wherever the best growth opportunities may be with the following breakdown >65% in common stocks & < 25% foreign stock. The fund is managed by James E. Drasdo since 1985 with various fund portfolio counselors. This mutual fund also known as growth stock mutual fund which means the fund will invest in company with best growth prospect. The expense ratio is 0.69% per year. The fund has returned 2.21% over the past year and 0.51% over the past 5 years based on load adjusted return. As typical Class A fund, there is a Front End Sales Load of 5.75% and a 12b1 fee of 0.23% for this actively managed fund. The fund has been lagging its competitor for this past year. To buy this fund, investor who has brokerage account with Scottrade or Firstrade can buy this fund.

This fund is also offered in most IRA retirement account, 401K account, and 529 educational accounts. Some asset classes of fund have lower expense ratio fee, and no front end sales charge fee. Other tickers of American Funds Growth Fund of America fund are: CGFAX, AGRBX, CGFBX, CGFCX, GFACX, RGAGX, GFAFX, CGFFX, CGFEX, RGAFX, RGACX, RGXAX, RGABX, and RGAEX. For instance, The R6 class (Ticker: RGAGX) has only 0.14% expense ratio and no front end sales load. The expense ratio of different classes of fund can range from 0.14% to 1.57%.

As discussed before, the primary fund portfolio consists of growth stocks. The top 5 sectors of fund as January 2011 are Oil & Gas energy, software technology, Media, Commercial Banks, and Semiconductor & semiconductor equipment. Top 10 largest equity holdings for this fund include Oracle, Google, Microsoft, Apple, Comcast, Union Pacific, Schlumberger, Phillip Morris International, JP Morgan Chase, and Suncor.


Fidelity ContraFund Holding
Fidelity ContraFund Holding

2. Fidelity Contrafund

This Fidelity Contra Fund is one of the 5 stars rated large growth fund by Morningstar. This fund is previously closed to investor; however it has reopened for new investor since late 2008. The fund has been a consistent performer through the years. The fund has invested most of its asset on blue-chip (i.e. large cap) household companies. The strategy helped the fund minimize losses as the market bottomed during 2008-2009 period, but it also capped returns when riskier parts of equity markets flourished in 2009. The fund is managed by William Danoff since 1990. There is no sales load for this mutual fund.

The Fidelity Contrafund objective is to seek capital appreciation. The fund usually invests in common stocks. It may invest in undervalue companies’ securities. The fund invests in both domestic and foreign issuers. It may invest in "growth" stocks or "value" stocks or “blend”. The expense ratio is 1.01% per year. The fund has returned 15.83% over the past year and -2.85% over the past 3 years. There is no Front End Sales Load and no 12b1 fee.

This fund is also offered in most IRA, 401K fund, and 529 account selection. There is only another asset class of Fidelity Contra Fund, FCNKX. This FCNKX fund has lower expense ratio of 0.85%.

The primary portfolio consists of large cap growth domestic stocks. The top 5 sectors of fund as January 2011 are Information Technology, Consumer Discretionary, Financials, Health Care, and Materials sector. Top 10 largest equity holdings for this fund are Apple Inc, Google Inc, Berkshire Hathaway Inc A, McDonalds Corp, Wells Fargo & Co, Coca-Cola Co, Disney Co, Noble Energy Inc, Nike, and Amazon.com Inc.


3. Fidelity Growth Company

This fund is currently closed to new investor. You can only invest in this fund if you have a retirement account which offers this Fidelity Growth Company fund. The Fidelity Growth Company fund objective is to seek capital appreciation. The fund invests primarily in common stocks such as domestic and foreign companies. It may invest in companies the advisor believes have above-average growth potential. The fund is managed by Steven S. Wymer since 1997. The expense ratio is 0.93% per year. The fund has returned 20.98% over the past year and 5.85% over the past 5 years. There is no Front End Sales Load and no 12b1 fee for this actively managed fund. Most Fidelity funds can be purchased for free (i.e. no fee) by opening Fidelity brokerage account either online of through various branches.

As January 2011, the top 5 largest major market sectors include Information Technology, Health Care, Consumer Discretionary, Industrials, Energy, and Consumer Staples sector. Top 10 largest equity holdings for this fund are Apple Inc, Salesforce.com Inc, Exxon Mobil Corp, Google Inc, Red Hat Inc, Alexion Pharmaceuticals Inc, Amazon.com Inc, Discover Financial Services, Qualcomm Inc, and Lululemon Athletica Inc.


Vanguard Primecap Holding
Vanguard Primecap Holding

4. Vanguard PRIMECAP

Vanguard Primecap fund seeks long term capital appreciation. The fund invests in above-average earnings growth potential stocks. Its portfolio consists mostly of mid- and large-capitalization stocks. To invest in this Vanguard fund, you will need to have $25,000 to meet the minimum initial investment criteria. This Vanguard fund is managed by Howard B. Schow since 1984. The expense ratio is 0.45% per year and it is low compare to most actively managed growth fund. The fund has returned -1.36% over the past 3 years and 3.72% over the past decade. There is no Front End Sales Load and no 12b1 fee for this actively managed fund.To have access to Vanguard Funds, you can open Vanguard Brokerage account.

As January 2011, the top 5 largest major market sectors include Information Technology, Health Care, Industrials, Consumer Discretionary, and Energy sector. Top 10 largest equity holdings contribute to 34.3% asset for this fund are Amgen Inc, FedEx Corp, Oracle Corp, Texas Instruments Inc, Potash Corp of Saskatchewan Inc, Google Inc, Novartis AG ADR, Eli Lilly & Co, DirecTV, and Intuit Inc.

Note: This fund may be closed for new investor.


5. T. Rowe Price Growth Stock

T. Rowe Price Growth Stock is another 4 stars rated large growth equity fund. The T. Rowe Price Growth Stock fund objective is to provide long term capital growth and increasing dividend income. It invest majority of its asset (>80%) in diversified group of growth stock companies. Its strategy may include foreign companies, options, and futures. The fund lead manager is P. Robert Bartolo since 2007. The expense ratio is 0.73% per year. The fund has returned 15.64% over the past year and 2.55% over the past decade. There is no Front End Sales Load and no 12b1 fee for this actively managed fund.

As January 2011, the top 5 largest major market sectors include Information Technology, Consumer Discretionary, Industrials & Business Services, Energy, and Financials sector. Top 10 largest equity holdings contribute to 31.85% asset for this fund are Amazon.com Inc, Apple, Baidu, Crown Castle International, Danaher, Google, Praxair, Qualcomm, Schlumberger, and Visa.


6. American Funds AMCAP

American Funds AMCAP fund seeks long term growth of capital. The AMCAP fund invests mostly in U.S. companies common stocks that have solid current long-term growth records and the potential for good future growth. The fund is managed by R. Michael Shanahan since 1986 with various fund portfolio counselors. The expense ratio is 0.78% per year. The fund has returned 4.94% over the past year and 0.67% over the past 5 years based on load adjusted return. As typical American Funds Class A fund, there is a Front End Sales Load of 5.75% and a 12b1 fee of 0.23% for this actively managed fund. You will need $250 initial investment capital to invest in this fund in your brokerage account.

This fund is also offered in most IRA retirement account, 401K account, and 529 educational accounts. Some asset classes of fund have lower expense ratio fee, and no front end sales charge fee. Other tickers of American Funds Growth Fund of America fund are: AMPBX (Class B), AMPCX (Class C), AMPFX (Class F1), AMCFX, CAFAX, CAFBX, CAFCX, CAFEX, CAFFX, RAFAX, RAFCX, RAFBX, RAFEX, RAFFX and RAFGX. For instance, The R6 class (Ticker: RAFGX) has only 0.42% expense ratio and no front end sales load. The expense ratio of different classes of fund can range from 0.42% to 1.56%.

As discussed before, the primary fund portfolio consists of growth stocks. The top 5 sectors of fund as January 2011 are Software, Health care equipment and supplies, Internet software & services, Aerospace & defense, and IT services. Top 10 largest equity holdings for this fund include Microsoft, Google, Oracle, Schlumberger, Accenture, Precision Castparts, Corning, Biogen Idex, JPMorgan Chase and Yahoo!.


Vanguard Growth Index Fund Holding
Vanguard Growth Index Fund Holding

7. Vanguard Growth Index

Vanguard Growth Index fund seeks to track the performance of MSCI US Prime Market Growth Index, its index benchmark. This index measures the investment return of large capitalization growth stocks (i.e. US Large Growth Stocks). Investor needs an initial investment of $3,000 to invest in this fund. This Vanguard fund is managed by Gerard C. O'Reilly since 1994. The expense ratio is 0.28% per year and it is low compare to most actively managed growth fund. The fund has returned -2.28% over the past 3 years and 2.62% over the past 5 years. There is no Front End Sales Load and no 12b1 fee for this passively managed fund. This fund is also available in admiral shares mutual fund and ETF format for lower expense ratio fee.

As of January 2011, the top 5 largest major market sectors include Information Technology, Consumer Discretionary, Consumer Staples, Health Care, Industrials, and Energy sector. Top 10 largest equity holdings contribute to 24.3% asset for this fund are Apple Inc, Microsoft Corp, International Business Machines Corp (IBM), Google Inc, Oracle Corp, Cisco Systems Inc, Schlumberger Ltd, Wal-Mart Stores, Inc, Philip Morris International Inc, and PepsiCo Inc.

8. Fidelity Advisor New Insights

Fidelity Advisor New Insights fund seeks capital appreciation. This fund will invest in either growth stocks or value stocks or both. The Fidelity Advisor New Insights fund may invest in securities of domestic and foreign issuers. This Fidelity fund is managed by William Danoff since 2003. The expense ratio is 1.18% per year. The fund has returned 8.48% over the past year and 2.65% over the past 5 years based on load adjusted return. This Fidelity Advisor funds also charge 5.75% of front end sales load and 0.25% of 12b1 fee.

As of January 2011, the top 5 largest major market sectors include Information Technology, Consumer Discretionary, Financials, Health Care, and Materials sector. Top 10 largest equity holdings contribute to 26.82% asset for this fund are Apple Inc, Google Inc, Berkshire Hathaway Inc A, Wells Fargo & Co, Coca Cola Co, McDonalds Corp, Disney Co, Noble Energy Inc, Nike Inc, and Amazon.com Inc.

Fidelity Blue Chip Growth Fund Holding
Fidelity Blue Chip Growth Fund Holding

9. Fidelity Blue Chip Growth

Fidelity Blue Chip Growth fund seeks long term growth of capital. This fidelity fund usually invests most of assets in above-average growth potential blue chip, well known and established companies. This Fidelity Blue Chip Growth fund is managed by Sonu Kalra since 2009. The expense ratio is 0.93% per year for this actively managed growth fund. The fund has returned 19.12% over the past year and 3.59% over the past 5 years. There is no Front End Sales Load and no 12b1 fee for this Fidelity fund. This fund may also be available in other classes of shares mutual fund with lower expense fee.

As of January 2011, the top 5 largest major market sectors include Information Technology, Consumer Discretionary, Industrial, Energy, and Consumer Staples sector. Top 10 largest equity holdings contribute to 26.44% of asset for this fund are Apple Inc, Google Inc, Exxon Mobil Corp, Qualcomm Inc, Amazon.com Inc, Target Corp, Philip Morris International Inc, Coca Cola Co, Massey Energy Corp, and Citigroup Inc.

10. T. Rowe Price Blue Chip Growth

T. Rowe Price Blue Chip Growth fund objective is to provide long-term capital growth and current income. This T Rowe Price fund will invest most of assets (>80%) in the common stocks of large and medium-sized blue chip growth companies. This T. Rowe Price Blue Chip Growth fund is managed by Larry J. Puglia since 1993. The expense ratio is 0.81% per year for this actively managed growth fund. The fund has returned 15.20% over the past year and 1.21% over the past 10 years. There is no Front End Sales Load and no 12b1 fee for this fund.

As of January 2011, the top 5 largest major market sectors include Information Technology, Consumer Discretionary, Industrial & Business Services, Financials, and Energy sector. Top 10 largest equity holdings contribute to 33.02% of asset for this fund are Amazon.com Inc, Apple Inc, Danaher, Express Scripts, Franklin Resources, Google, Praxair, Qualcomm, Schlumberger, and Starbucks.

 

Disclosure

I have no affiliation with any of these mutual funds. I don't have position in any of these funds. Please do your own research for additional details. Please trade and invest responsibly. Past Performance is No Guarantee of Future Results

Top 14 Large Growth Stock Mutual Fund Performance

(click column header to sort results)
No  
Mutual Funds Description  
Ticker  
1 Yr  
3 Yr  
5 Yr  
10 Yr  
1
American Funds Growth Fund of Amer
AGTHX
2.21%
-6.70%
0.51%
1.79%
2
Fidelity Contrafund
FCNTX
15.83%
-2.85%
4.34%
5.48%
3
Fidelity Growth Company
FDGRX
20.98%
-1.39%
5.15%
1.65%
4
Vanguard PRIMECAP
VPMCX
10.12%
-1.36%
4.16%
3.72%
5
T. Rowe Price Growth Stock
PRGFX
15.64%
-2.60%
3.17%
2.55%
6
American Funds AMCAP A
AMCPX
4.94%
-4.41%
0.67%
2.25%
7
Vanguard Growth Index
VIGRX
14.52%
-2.28%
2.62%
0.29%
8
Fidelity Advisor New Insights
FNIAX
8.48%
-5.42%
2.65%
N/A
9
Fidelity Blue Chip Growth
FBGRX
19.12%
0.51%
3.59%
0.22%
10
T. Rowe Price Blue Chip Growth
TRBCX
15.20%
-3.04%
2.50%
1.21%
11
Harbor Capital Appreciation
HCAIX
10.44%
-2.04%
1.61%
-0.03%
12
Janus Twenty D
JNTFX
4.59%
-4.88%
5.12%
0.94%
13
Vanguard Capital Opportunity
VHCOX
12.64%
-2.35%
4.62%
5.12%
14
Vanguard Morgan Growth
VMRGX
16.28%
-3.67%
2.20%
1.70%
Updated 12/1/2010

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