Long-Term Strategies

Many investors regard long-term growth as the primary investment goal and mutual funds with long-term capital appreciation strategies as the best investment funds. Long-term growth emphasizes equity. It secures some of the best results in growth industries where, like a rising tide, the economic activity level tends to lift all participants. The market can move quickly and change directions without clear reasons; however, performance viewed over a long window of years provides many investors with a sense of confidence and direction. When reviewing long-term growth investments, one frequently used tool is a ten-year past view of performance.

Leading Long-Term Growth Funds

Long-term growth funds tend to select low dividend stocks; part of the reason the market undervalues a low-dividend stock is that higher dividend issues are in greater demand. The key characteristic is the potential for growth. Part of the growth comes from growth in the industry, and the best investment funds project growth from capitalization and the intrinsic value of the stock. Vanguard PrimeCap Fund is a long-view strategy. It selects stocks with large to medium capitalization that investors undervalue in the marketplace. The key to long-term appreciation is a solid basis and a favorable market position for steady growth. The strategic goals are long-term appreciation and capital growth. The Vanguard PrimeCap Fund has an investor-favorable expense ratio of 0.45 percent. Its one-year growth is 22 percent, and its ten-year performance is slightly above ten percent. Guinness Atkinson Global Innovators Fund showed a return above 19 percent for the past year. The past three-year figure was 23.2 percent and 18 percent over the past five years. Over the past ten years, the return was 11.76 percent. Bridgeway Large Cap Growth Fund returned 19 percent over the past year. The three-year returns were respectively 21.2 percent and17.3 percent. The ten-year figure was 8.37 percent.

High Performing Large Cap

With a short term view, some best investment funds stand out for high growth. The view is narrower than the ten-year perspective; it is in the one to three-year range; the growth and performance may appeal to investors who wish to find leaders in the current year. The Biondo Focus Fund reported a 26.73 percent over the past year. Over the past three years, it added 19.91 percent. Catalyst Dynamic Alpha Fund invests primarily in U.S. based common stocks. Its portfolio consisted approximately 80 percent in common stocks and the balance in other equity securities such as deposit receipts and REITs. Over the past year, the fund returned an impressive 25 percent.

Balancing Income and Equity

Nearly every portfolio development strategy can accommodate high yield dividend funds that provide opportunities weighted in favor of profits. When the strategy focuses on producing income and equity growth takes a second place, long term goals need not be sacrificed. Cash assets and profit-taking have a place in every strategy because it enables new investment and provides flexibility to react to changed market circumstances. One can argue that balancing a portfolio based on a long-term view can be strengthened by high yield dividend investments. These profit producers will reinforce the long-term strategy by providing short term benefits and protection against risk.