A growth mutual fund focuses on companies with the potential for significant capital appreciation and above-average revenue or earnings growth history. These mutual funds are worth considering by investors with a long-term horizon. Today, we have focused on two growth mutual funds – VIGAX and FBGRX – with over 10% upside potential in the next twelve months.
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Let’s delve deeper.
Vanguard Growth Index Fund Admiral Shares (VIGAX)
The Vanguard Growth Index Fund seeks to provide long-term capital appreciation by tracking the investment performance of the CRSP US Large Cap Growth Index. Over the past six months, VIGAX has gained 8%.
On TipRanks, the VIGAX has a Smart Score of eight, meaning it has the potential to outperform market expectations. As of today’s date, VIGAX has 221 holdings with total assets of $172.69 billion. Its top three holdings include Apple (AAPL), Microsoft (MSFT), and Amazon.com (AMZN).
VIGAX has a Moderate Buy consensus rating. This is based on the weighted average consensus rating of each stock held in the portfolio. Of the 221 stocks held, 188 have Buys, 32 have a Hold rating, while one has a Sell rating. The average Vanguard Growth Index Fund price target of $174.36 implies 12.4% upside potential from the current levels.
Fidelity Blue Chip Growth Fund (FBGRX)
The Fidelity Blue Chip Growth Fund focuses on long-term capital appreciation by investing in blue-chip stocks. This fund boasts a track record of outperforming its benchmark, the Russell 1000 Growth Index. FBGRX has gained 8% over the past six months.
The FBGRX also has a Smart Score of eight, which indicates it has the potential to beat the market average. As of today’s date, FBGRX has 206 holdings with total assets of $45.01 billion. Its top three holdings are Microsoft, Nvidia (NVDA), and Apple.
On TipRanks, FBGRX has a Moderate Buy consensus rating. This is based on 172 stocks with a Buy rating, 33 stocks with a Hold rating, and just one Sell. The average FBGRX mutual fund price target of $193.26 implies 14.9% upside potential from the current levels.
Concluding Thoughts
Investing in mutual funds has several benefits, such as diversification, higher liquidity, and low minimum investment requirements. These advantages, coupled with the considerable upside potential expected by analysts in VIGAX and FBGRX mutual funds, make them worth considering by investors.
