Investors see a revival of growth funds in 2007

Oct 1, 2007 12:00 PM, Stan Luxenberg

For years, investors have been waiting for a revival of growth funds. The moment may have arrived. During the first seven months of 2007, large-cap growth funds outdid large-cap value by more than 3 percentage points. But growth funds can be volatile. To participate in a growth rally — without taking too much risk — try one of these funds.

They have below-average standard deviation for the category, and above-average returns for 2002 through 2007, as well as 2000 and 2002, when the market tanked.

LOW VOLATILITY, HIGH RETURN LARGE-CAP GROWTH FUNDS
Fund	Ticker	Standard Deviation	2000 Return	2002 Return	5-year Return	Category % Rank 5-Year Return
American Funds Growth Fund of America	AGTHX	12.0	7.5%	-22.0%	13.7%	5
Brandywine Blue	BLUEX	12.0	6.8	-13.5	13.0	8
Fidelity Contrafund	FCNTX	9.6	-6.8	-9.6	13.7	5
FMI Provident Trust Ivy Cap	FMIRX	9.6	-16.3	-16.3	13.3	6
Appreciation A	WMEAX	9.7	N/A	-15.1	12.6	10
Source: Morningstar; Returns through 6/30/07.

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