Way to Grow
A computer model picks this fund's winners.
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.
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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.
Dian Vujovich is an author, syndicated columnist and
publisher of fund-investing site www.fundfreebies.com.