Growth mutual funds invest in companies that have a proven history of surpassing average revenue and earnings growth rates. These funds aim to benefit from the long-term potential of these companies, focusing on capital appreciation. Today, we have shortlisted two growth mutual funds – VWUSX and FFIDX – with at least 10% upside potential in the next twelve months.
Let’s delve deeper.
Vanguard U.S. Growth Fund (VWUSX)
The fund invests mainly in large and mid-size stocks of U.S. companies with strong potential for growth. As of today’s date, VWUSX has 111 holdings with total assets of over $38.18 billion. It has a low expense ratio of 0.3%, making it a cost-effective option. Also, VWUSX has generated a return of 26.5% over the past six months.
Overall, VWUSX has a Moderate Buy consensus rating. This is based on the weighted average consensus rating of each stock held in the portfolio. Of the total stocks held, 96 have Buys, 14 have a Hold rating, and one has a Sell rating. The analysts’ average price target on VWUSX of $71.57 implies a 12.94% upside potential from the current levels.
The Fidelity Fund (FFIDX)
The fund invests a portion of its assets in bonds, including lower-quality debt securities. The fund invests in domestic and foreign issuers. It invests in either growth stocks, value stocks, or both. The FFIDX fund has 94 holdings with total assets of $6.82 billion. Additionally, the fund has a low expense ratio of 0.46%. The FFIDX fund has returned about 22% in the past six months.
On TipRanks, FFIDX has a Strong Buy consensus rating. This is based on 84 stocks with a Buy rating and 10 stocks with a Hold rating. The analysts’ average price target on the FFIDX mutual fund of $92.74 implies about 10% 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, along with over 10% upside potential expected by analysts in VWUSX and FFIDX mutual funds, make them worth considering by investors.
