3 Big Yet Competitive Funds
Asset growth hasn't impeded the performance of these Gold-rated funds.
Susan Dziubinski: Hi, I'm Susan Dziubinski for Morningstar.com. Sometimes funds can get too big for their own good and the growth in assets interferes with the manager's strategy and can hurt performance. Today, we're looking at three very large funds that continue to accept new investments, but their asset growth hasn't derailed performance. All three funds earn Morningstar Fund Analyst Ratings of Gold.
Katie Reichart: T. Rowe Price Blue Chip Growth is an appealing Gold-rated fund that hits on all the high points. Manager Larry Puglia launched the fund in 1993 and has posted a superb long-term record that beats the Russell 1000 Growth Index and large-growth peers. The fund stayed reliably consistent over time in terms of its portfolio construction despite its growing asset base. Puglia relies on T. Rowe's talented analyst team, which is particularly skilled in technology and communications, which are big parts of the fund. And the fund has had some longtime winners in picks such as Amazon, but it's hardly a one-trick pony. The fund is diversified across more than 100 stocks, which helps Puglia maximize the best ideas he has of T. Rowe's analyst team across sectors. The strategy is now over $100 billion in assets. So, it's one of the biggest in the large-growth category, but its size hasn't slowed it down yet. The portfolio remains highly liquid and focused on large-cap companies, and its performance hasn't skipped a beat. T. Rowe also has a good record of closing funds at the manager's discretion, so that provides further confidence.