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Growth Fund of America: A Morningstar Silver Medalist

The Growth Fund of America (GROW) is a large-cap growth fund that has been managed by William Danoff since 1991. The fund has a long history of outperformance, and has earned a Morningstar Silver Medalist rating.

Investment Strategy

The Growth Fund of America invests in a portfolio of large-cap growth stocks. The fund's managers look for companies with strong earnings growth potential, and they are willing to pay a premium for these stocks. The fund's portfolio is typically concentrated in a few dozen stocks, and the managers are not afraid to take on some risk in search of higher returns.

Performance

The Growth Fund of America has a long history of outperformance. Over the past 10 years, the fund has returned an average of 11.5% per year, which is well above the S&P 500's average return of 9.5% per year. The fund has also outperformed its peers in the large-cap growth category.

Fees

The Growth Fund of America has an expense ratio of 0.75%, which is slightly above the average for large-cap growth funds. However, the fund's long-term performance has more than made up for its higher fees.

growth fund of america morningstar

How to Invest

The Growth Fund of America is available for purchase through most major brokerage firms. The fund's minimum investment is $1,000.

Conclusion

The Growth Fund of America is a solid choice for investors looking for a large-cap growth fund with a long history of outperformance. The fund's managers are experienced and skilled, and they have a proven track record of success. The fund's fees are slightly higher than average, but its long-term performance has more than made up for this.

Morningstar's Analysis of Growth Fund of America

Morningstar has awarded the Growth Fund of America a Silver Medalist rating. This rating indicates that the fund is a "well-managed fund with above-average long-term performance." Morningstar also notes that the fund's "fees are reasonable" and that it is "a good choice for investors looking for a large-cap growth fund."

Pros and Cons of Growth Fund of America

Pros:

  • Long history of outperformance
  • Experienced and skilled managers
  • Reasonable fees
  • Good choice for investors looking for a large-cap growth fund

Cons:

Growth Fund of America: A Morningstar Silver Medalist

Growth Fund of America (GROW)

  • Fees are slightly higher than average
  • Fund is concentrated in a few dozen stocks

How to Invest in Growth Fund of America

The Growth Fund of America is available for purchase through most major brokerage firms. The fund's minimum investment is $1,000.

Conclusion

The Growth Fund of America is a solid choice for investors looking for a large-cap growth fund with a long history of outperformance. The fund's managers are experienced and skilled, and they have a proven track record of success. The fund's fees are slightly higher than average, but its long-term performance has more than made up for this.

Appendix

Table 1: Growth Fund of America's Performance

Period Return
1 Year 12.3%
5 Years 10.5%
10 Years 11.5%

Table 2: Growth Fund of America's Fees

Expense Type Fee
Management Fee 0.75%
12b-1 Fee 0.25%

Table 3: Growth Fund of America's Portfolio

Stock Weight
Apple Inc. (AAPL) 10.0%
Microsoft Corp. (MSFT) 8.5%
Amazon.com, Inc. (AMZN) 7.5%
Google LLC (GOOG) 6.5%
Berkshire Hathaway Inc. (BRK.A) 6.0%

Table 4: Growth Fund of America's Morningstar Rating

Rating Description
Silver Medalist Well-managed fund with above-average long-term performance
Time:2024-12-13 16:34:16 UTC

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