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Selecting a Suitable Large-Growth Fund

There are several things to consider first.

Josh Charlson, CFA: Growth stocks have been on an unbelievable run over the past decade, far outperforming value. Perhaps you’re thinking of adding a large-growth fund to your portfolio or replacing one that has underperformed. It’s not as simple as just picking a fund that has performed well recently, because there can be significant differences in how a large-growth fund executes its strategy. I’m going to discuss some of the considerations you should take into account when selecting a large-growth fund. 

First, what is the growth style of the fund manager? Some managers focus on rapidly accelerating firms, others on more-durable growers, while still others incorporate cyclical-growth firms like industrials. How the manager defines his or her focus can have significant effects on the risk and performance patterns of a fund.

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