This Sector – Large Cap Growth product has a history of positive total returns for over 10 years. The fund invests a major portion of its assets in large-cap companies, including U.S. Goldman Sachs Large Cap Growth Insights Fund GSCLX seeks capital growth over the long run. 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).
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. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. We expect these funds to outperform their peers in the future. Additionally, the minimum initial investment is within $5000. Moreover, these funds have encouraging three and five-year returns. Given such circumstances, we have highlighted four mutual funds from the aforesaid winning areas carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or #2 (Buy). Market uncertainties forced investors to invest in relatively stable sectors like healthcare. For the record, the Health Care Select Sector SPDR ETF (XLV) gained 2.5% between Jan 2 and Dec 31, 2018. Healthcare funds, in the meantime, performed the best among sector funds.
Thus, large-cap growth funds not only had the best year-to-date returns in 2018 among nine Morningstar Style Box categories of funds, such funds are further poised to gain traction this year. economy, by the way, is expected to slow down to an annualized growth rate of 2.3% this year from 3% in 2018. The reason behind a rally in large-cap growth stocks is that such stocks benefit immensely from strong earnings and expectations that they will perform well even if the economy slows down. Historically, when markets turn jittery, large-cap growth stocks outperform small-caps as well as mid-cap ones.