The american century investments growth fund is a standout mutual fund offered by american century investments. As one of the largest US investment management firms, american century investments manages over $200 billion in assets and offers a wide range of mutual funds. The american century investments growth fund specifically focuses on long-term capital appreciation by investing in stocks of larger well-established companies. With a solid track record of performance over decades, the american century investments growth fund remains a top choice for investors seeking long-term growth potential.
The american century investments growth fund invests in large, blue-chip companies with growth potential
The investment strategy of the american century investments growth fund is to invest in stocks of larger, well-established companies that have the potential for long-term earnings growth. Typically, the fund’s portfolio consists of around 100 stocks of large-cap companies with market capitalizations averaging over $10 billion. The fund takes a ‘growth at a reasonable price’ approach, selecting companies that have demonstrated consistent earnings growth and potential for future growth. Sectors emphasized include information technology, consumer discretionary, financials, healthcare and industrials.
The growth fund has delivered strong long-term returns competitive with its benchmark index
With its focus on larger blue-chip growth stocks, the american century investments growth fund has achieved competitive total returns over the long run versus its benchmark, the Russell 1000 Growth Index. According to american century investments, the investor share class of the growth fund has delivered an average annual total return of 11.43% over the past 10 years as of January 2023, outpacing the Russell 1000 Growth Index’s return of 11.00% over the same period. The fund has also outperformed its peer category, ranking in the top 27% of all Large Growth mutual funds tracked by Morningstar over 10 years.
Low expenses and a experienced management team contribute to the growth fund’s success
Two additional advantages of the american century investments growth fund are its low expense ratio and experienced portfolio management team. The fund’s net expense ratio is only 0.46% for the investor share class, which is lower than many comparable large-cap growth funds. The fund is managed by a team of seasoned investment professionals led by portfolio managers Gregg Woodhams, CFA and Stephon James, who have over 25 years combined experience at american century investments.
The growth fund may be appropriate for investors with long-term time horizons
The american century investments growth fund can be an attractive choice for investors seeking a mutual fund focused on large-cap growth stocks in companies with strong fundamentals. Given its concentration in larger blue-chip companies, the fund may be particularly appropriate for investors who have long time horizons and are willing to withstand some volatility in pursuit of long-term growth. The fund could complement more conservative fund holdings as the growth component of a diversified investment portfolio.
With its experienced management team, competitive long-term performance record, and low expenses, the american century investments growth fund stands out as a top-performing large-cap growth mutual fund suitable for long-term investors.