Top Growth Equity Funds

3 Burgeoning Picks

Van Kampen Equity Growth A (VEGAX) seeks to provide long-term capital appreciation by investing primarily in growth oriented equity securities of medium and large capitalization companies. It was incepted in May 1998.

The fund invests primarily in a portfolio of growth-oriented companies that exhibit strong or accelerating earnings growth. It emphasizes individual security selection and generally focuses on its investments in a relatively small number of companies within the limits permissible for a diversified fund.

The fund has an expense ratio of 1.14%. As of June 2009, it has a portfolio turnover of 33%.

Kristian Heugh has been lead manager of the fund since June 2006. Since 2001, Heugh has been with Morgan Stanley Dean Witter Advisors, of which Van Kampen Investments Inc is a subsidiary. Currently, he is a vice president and a portfolio manager with the firm

Yacktman Focused Fund (YAFFX) was incepted in May 1997. It seeks long-term capital appreciation and, to a lesser extent current income.

The fund mainly invests in common stocks of United States companies, some, but not all of which, pay dividends and holds fewer than 20 securities. The fund employs a disciplined investment strategy by buying growth companies of any size at low prices. This approach combines the best features of growth and value investing. The fund may invest in companies of any capitalization.

Shareholders have to make a minimum initial investment of $2,500 to enter this Zacks#1 Rank (“Strong Buy”) fund. As of September 2009, it has a portfolio turnover of 9%.

Donald A. Yacktman has been lead manager of the fund since April 1997. Yacktman formed Yacktman Asset Management in 1992 and is president of the firm.

Aim Mid Cap Basic Value A (MDCAX) seeks long-term growth of capital. It was incepted in December 2001.

The fund invests at least 80% of its assets in securities of mid-capitalization companies that offer potential for capital growth. It may invest up to 25% of its total assets in foreign securities. The fund may also invest in debt instruments that are consistent with its investment objective of long-term growth of capital.

The fund has an expense ratio of 1.98%. It distributes dividends and capital gains, if any, annually.

R. Canon Coleman II has been lead manager of the fund since May 2003. Coleman II is a Chartered Financial Analyst and a Certified Public Accountant and is a portfolio manager with AIM Advisors.