Steady Growth

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

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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