Explore the top 10 equity mutual funds for long-term growth in 2024
Equity mutual funds are one of the main investment strategies for long-term financial growth. They simply relate to stocks and give great capital appreciation over a long period of ten years. Regardless of whether you’re a veteran investor or a newbie, the right equity mutual fund can make all the difference in the world in terms of return on investment. Here is a look at the 10 best equity mutual funds for good growth in the long run in the year 2024.
1. Vanguard 500 Index Fund (VFIAX)
Overview: The Vanguard 500 Index Fund tracks the performance of the S&P 500 Index, which represents the 500 largest companies in the US. Essentially, this fund is an important core hold for many investors due to the broad exposure to the market and a very minimal expense ratio.
Key Features
Diversification: 500 of the largest U.S. companies.
Expense Ratio: Very low at 0.04%.
Performance: The fund has an almost consistent track to matching the S&P 500. This means that for any investor who wants to enjoy steady growth, then this is their fund of choice.
Why Consider It: VFIAX offers a cheap avenue towards more accessible investing in the broader U.S. stock market. Cheap rates and diversification make it great for any long-term investor who wants steady results and to match the market.
2. Fidelity Contrafund (FCNTX)
Overview: The Fidelity Contrafund is a growth-oriented fund that tries to invest in those undervalued companies that hold very good growth potential. The investment is focused on large-cap growth stocks, which can be relied upon to fetch high returns.
Key Features
The investment is oriented towards companies with very strong growth potential.
Expense ratio: 0.85%. The fund displays a history of very strong growth based on market inefficiencies.
Why Consider It: This fund seems an ideal place for those who wish to look for higher growth potential and do not mind how risky the position can be. Its pure growth/large-cap growth orientation gives this portfolio the promise of significant capital appreciation.
3. T. Rowe Price Blue Chip Growth Fund (TRBCX)
Overview: T. Rowe Price Blue Chip Growth Fund has investments directly into large-cap companies with good growth potential. It targets industrial leaders and companies showing consistent performance.
Key Features
Investment: High-quality blue-chip growth stocks
Expense Ratio: 0.68%
Performance: Strong historical returns, a function of its focus on high-growth companies.
Why Consider It: TRBCX is a solid choice for investors seeking growth from established companies with a record of solid performance. It provides stability with growth potential.
4. American Funds Growth Fund of America (AGTHX)
Overview: It invests in a diversified portfolio of growth stocks and seeks to achieve long-term capital growth. It predominantly invests in companies with significant growth potential.
Key Features
Strategy: Diversified growth-oriented portfolio.
Expense Ratio: 0.64%
Performance: AGTHX enjoys solid long-term performance. It is also very diversified.
Why Consider It: If you have always thought that the only way to invest in growth stocks is through a focused portfolio, then you are wrong. This is the fund to consider. It is therefore good for individuals who wish to enjoy exposure to a range of high-growth companies.
5. Schwab U.S. Large-Cap Growth ETF (SCHG)
Overview: Schwab U.S. Large-Cap Growth ETF aims to give exposure to large-cap growth stocks in the United States market. Let us now consider some of the top companies in which the fund is investing.
Key Features
Expense Ratio: Low at 0.04%
Performance: At par, or equal, with large-cap growth equities
Liquidity: SCHG is highly liquid because it is structured as an ETF
Why Consider It: This is the perfect fund for investors seeking cost-effective exposure in large-cap growth equities. It also has a low expense ratio and is relatively highly liquid, which is suitable for long-term growth.
6. Morgan Stanley Institutional Growth Fund(MSEGX)
Overview: Morgan Stanley Institutional Growth Fund This fund focuses on investing in growth stocks, which have the potential for capital appreciation. This fund actively seeks to find opportunities that are higher in growth.
Key Features
Focus: High-growth stocks
Expense Ratio: 0.73%
Performance: Historically good, invests in such securities which makes sure the returns on the investment are good enough.
Why Consider It: MSEGX is an appropriate investment for investors who are looking for a growth fund that is too actively managed; thus, the active management leads to possibly unearthing high return opportunities that might get missed by passive funds.
7. anus Henderson Forty Fund (JAVLX):
Overview: Janus Henderson Forty Fund is high-conviction, high-growth investing comprised of a company portfolio of less than 40 to deliver high returns.\with the focused investment approach.
Key Features
Unique Advantage: It focuses on investment by investing in 40 high-growth companies.
Expense Ratio: 0.75 %.
Performance: Strongly aggressive growth strategy, up floating with historical returns.
Why Consider it: The fund is aptly suitable for investors wishing to outlay their capital in a concentrated high-growth policy. Focused on a smaller basket of high-growth stocks can result in plenty of returns.
8. MFS Growth Fund (MFEIX)
Overview: The MFS Growth Fund seeks to achieve long-term capital appreciation by investing in diversified growth stock. The fund holds a relatively balanced approach to risk and reward.
Key Details
Diversification: Broad-based exposure to growth stocks.
Expense Ratio: 0.72%.
Performance: Quite decent performance with a diversified investment strategy.
Why Consider It: MFEIX is a solid choice for investors seeking diversified exposure to growth stocks; its relatively balanced approach can be an ideal bet for long-term growth with modest risk.
9. Invesco QQQ Trust (QQQ)
Overview: The Invesco QQQ Trust-tracking Fund tries to reflect the performance of the NASDAQ-100 Index, which is made up of a large number of tech and growth-centric types of stocks.
Key Features
Portfolio Focus: Technology and growth stocks
Expense Ratio: 0.20%
Performance: Aligns with NASDAQ-100, an index of high-growth potential
Why Consider It: QQQ is a good match for those investors looking to play in the technology and growth stocks sectors. Its primary investment in high-growth technology companies can yield considerable returns.
10. Vanguard Growth Index Fund – VIGAX
Overview: The Vanguard Growth Index Fund is designed to provide long-term capital appreciation through investment in large-cap growth stocks that are expected to outperform the market.
Key Features
What’s Unique: This mutual fund invests in large-cap growth stocks and has a low expense ratio of around 0.05%.
Performance: Manages to track growth stock performance pretty well.
Why Consider It: It is ideal for those looking to invest in a low-cost diversified fund that focuses on large-cap growth stocks. With a low expense ratio and an impressive track of long-term growth, VIGAX is a strong shopping candidate.
Conclusion
As such, getting the right equity mutual fund is important if one expects long-term financial growth. From broad market exposure to concentrated growth investments, the above-listed funds have different strategies among themselves; thus, they cater to different types of investors in that some seek a more stable investment opportunity, others seek an aggressive buildup, and others seek sector-specific exposure.
