Mutual Funds that have Averaged 12% for the Past Five Years

Getting a 12 percent return on a mutual fund means you’re beating the stock market and will likely be able to retire comfortably. To help you find these funds, we’ve researched annual returns to compile a list of mutual funds that have historically averaged around 12 percent or, in some cases, higher.

Mutual Funds That Have Averaged 12 Percent Returns

Below, we have the list of mutual funds that have averaged around 12 percent over the past five years, with some showing higher average returns over the past ten years. Our list is based on data from the official fund websites, Market Watch, and Morningstar. The average returns, assets, expense ratios, and holdings were compiled from the most up-to-date data as of press time, updated December 2018.

AB Core Opportunities Fund, Class A (ADGAX)

  • About: ADGAX invests in domestic companies of any size with long-term growth potential.
  • Founded: 1999
  • 5 Year Average Return: 11.67 percent
  • 10 Year Average Return: 15.36 percent
  • Net Assets: About 1.3 billion
  • Top holdings sectors: Technology and healthcare
  • Morningstar Return Rating: 3
  • Morningstar Risk Rating: 1
  • Expense Ratio: About 0.80 percent
  • Learn more at the Alliance Bernstein website.

AB Growth Fund, Class B (AGBBX)

  • About: AGBBX invests in domestic companies of any size with long-term growth potential.
  • Founded: 1987
  • 5 Year Average Return: 12.93 percent
  • 10 Year Average Return: 15.31 percent
  • Net Assets: About 10 million
  • Top holdings sectors: Technology, healthcare, and consumer cyclical
  • Morningstar Return Rating: 3
  • Morningstar Risk Rating: 2
  • Expense Ratio: About two percent
  • Learn more at the Alliance Bernstein website.

AB Large Cap Growth Fund, Class R (ABPRX)

  • About: ABPRX focuses mainly on the stocks of large domestic growth companies.
  • Founded: 2003
  • 5 Year Average Return: 13.25 percent
  • 10 Year Average Return: 17.95 percent
  • Net Assets: About 69 million
  • Top holdings sectors: Technology, health care, and consumer services
  • Morningstar Return Rating: 4
  • Morningstar Risk Rating: 2
  • Expense Ratio: About 1.25 percent
  • Learn more at the Alliance Bernstein website.

Alger Capital Appreciation Fund, Class A (ACAAX)

  • About: ACAAX invests in U.S. stocks with long-term growth potential.
  • Founded: 1996
  • 5 Year Average Return: 11.6 percent
  • 10 Year Average Return: 16.51 percent
  • Net Assets: About 1.25 billion
  • Top holdings sectors: Technology and consumer cyclical
  • Morningstar Return Rating: 4
  • Morningstar Risk Rating: 3
  • Expense Ratio: About 1.25 percent
  • Learn more at the Alger Capital factsheet.

American Century Disciplined Growth Fund, Investor Class (ADSIX)

  • About: ADSIX invests 99% of its capital in U.S. companies with more than $2 billion market capitalization.
  • Founded: 2005
  • 5 Year Average Return: 10.01 percent
  • 10 Year Average Return: 15.37 percent
  • Net Assets: About 314 million
  • Top holdings sectors: Technology, consumer cyclical, and healthcare
  • Morningstar Return Rating: 3
  • Morningstar Risk Rating: 2
  • Expense Ratio: About one percent
  • Learn more at the American Century website.

American Funds Growth Fund of America (AGTHX)

  • About: AGTHX is a large capitalization fund which invests in primarily U.S. equities. This fund, in particular, is one Dave Ramsey often uses as an example of a fund that can earn 12% annually.
  • Founded: 1973
  • 5-Year Average Return: 11.01 percent
  • 10-Year Average Return: 14.35 percent
  • Net Assets: About 85.5 million
  • Top holdings sectors: Information technology and consumer discretionary
  • Morningstar Return Rating: 3
  • Morningstar Risk Rating: 2
  • Expense Ratio: About 0.60 percent
  • Learn more at the American Funds website.

Bridgeway Large Cap Growth Fund (BRLGX)

  • About: BRLGX invests in large capitalization companies in the domestic market.
  • Founded: 2003
  • 5 Year Average Return: 11.38 percent
  • 10 Year Average Return: 15.14 percent
  • Net Assets: About 280 million
  • Top holdings sectors: Technology and healthcare
  • Morningstar Return Rating: 3
  • Morningstar Risk Rating: 3
  • Expense Ratio: About 0.80 percent
  • Learn more at the American Beacon website.

Brown Advisory Flexible Equity Fund, Advisor Shares (BAFAX)

  • About: BAFAX invests in large and medium capitalization companies, within the U.S., with long-term growth potential.
  • Founded: 2007
  • 5 Year Average Return: 13.95 percent
  • 10 Year Average Return: 11.97 percent
  • Net Assets: About 4.5 million
  • Top holdings sectors: Financial services and technology
  • Morningstar Return Rating: 2
  • Morningstar Risk Rating: 3
  • Expense Ratio: About 1.15 percent
  • Learn more at the Brown Advisory website.

Smith Group Large Cap Core Growth Fund, Institutional Class (BSLGX)

  • About: Following Russell 1000 Growth Index, BSLGX invests in large-capitalization companies.
  • Founded: 2007
  • 5 Year Average Return: 14.42 percent
  • 10 Year Average Return: 10.55 percent
  • Net Assets: About 45 million
  • Top holdings sectors: Technology, industrials, and healthcare
  • Morningstar Return Rating: 4
  • Morningstar Risk Rating: 4
  • Expense Ratio: About 0.80 percent
  • Learn more at the Smith Group Asset Management website.

Thrivent Large Cap Growth Fund, Class A (AAAGX)

  • About: AAAGX mainly invests in large capitalization domestic companies, following indices like S&P 500, Russell 1000 Growth Index, etc.
  • Founded: 1999
  • 5 Year Average Return: 11.07 percent
  • 10 Year Average Return: 14.27 percent
  • Net Assets: About 238 million
  • Top holdings sectors: Technology and consumer cyclical
  • Morningstar Return Rating: 3
  • Morningstar Risk Rating: 3
  • Expense Ratio: About 1.20 percent
  • Learn more at the Thrivent Mutual Funds website.

For more mutual fund options, see our article on mutual funds with the highest dividends. We also have a list of the best-performing index funds to consider.

As you can see, the mutual funds that have averaged 12 percent for the past five years have all been domestic growth mutual funds. Returns on these funds can vary significantly based on the state of the U.S. economy, and it can be difficult for funds to keep over a 12 percent return, particularly through a recession. As such, it’s essential to keep the economic forecast in mind when choosing your investments.

In Summary

Mutual fund return rates can change dramatically based on the state of the economy, especially if the fund focuses only on domestic growth investments. However, over the past five and ten years, the Smith Group Large Cap Core Growth Fund, Brown Advisory Flexible Equity Fund, and AB Large Cap Growth Fund have proven to be a few of the most reliable funds with returns of around 12 percent or higher.

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5 thoughts on “Mutual Funds that have Averaged 12% for the Past Five Years

  1. I am 58 years old and have been approved for SSI disability. I am currently receiving a pension and have an annunity of nearly $350,000. Should I take the annunity out in a lump sum and invest mutual funds?

    1. Hi Paul,

      This type of decision is always best made by talking to a financial advisor, as a number of factors must be considered.

  2. Hello I’m very new to these investments & would like to know how to get started. What is the minimum amount allowed for this particular type of mutual fund

    1. Hi Kymberli,

      The specific minimum investment amount will depend on the financial institution use go through to invest in a mutual fund. Commonly, you’ll need at least $3,000. As a beginner, you should also keep an eye out for what fees are being charged on your investment. The financial institution will typically charge a small percentage of earning each year. Though the difference might seem small when its 1% versus 1.5%, it can add up quickly. You can try this fund analyzer tool to get a better idea of how fees will affect your investment. Also, the Securities and Exchange Commission has helpful information and guides about mutual funds. Good luck!

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