URL: http://www.entrepreneur.com/magazine/entrepreneur/2004/september/72214.html

Large-cap growth funds may not sound exciting, but there's a solid place for them in a diversified portfolio-particularly those that have had the same portfolio manager at their helm since inception.

Take the Touchstone Large Cap Growth Fund, for instance. It's a 6-year-old quantitative fund with a smart portfolio manager behind it who uses world-class research to create the portfolio.

Quantitative funds use computer-driven models to weed through the equity universe. In this fund, about 400 stocks that meet the fund's investment criteria are whittled down to a few each week. In the end, about 35 stocks are kept in the portfolio.

With a performance record that ranks it in the top deciles of Lipper's equity fund universe, this fund has outperformed its bench mark, the Russell 1000 Growth Index, over the past one-, three- and five-year periods.

Who's the fund for? Those who fancy concentrated equity portfolios where the fewer the holdings, the greater the risk/reward opportunities are.

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Dian Vujovich is an author, syndicated columnist and publisher of fund-investing site www.fundfreebies.com.