Vanguard PRIMECAP Mutual Fund (VPMCX)
The Vanguard PRIMECAP Mutual Fund (VPMCX) is a large cap large growth fund that is considered a positive stand out amongst the other mutual funds. The investments made by the fund managers us a strategy of acquire long term capital appreciation from company stocks that show above average growth potential. There are six different fund managers whom each have control over a certain percentage of the fund’s assets for which they make the decision on what to invest in.
The strategy is to buy stocks of fast growing companies at a low price because they are out of favor with other stock brokers and fund managers has proven to be a wise investment over the years. The one year return for last year was 38.64% and with expenses at 0.49% are just two of the reasons this fund has received a 5 star rating from Morningstar. This is an average risk fund with above average returns for investors.
The minimum amount needed to invest in this fund is $25,000, but at the present time is closed to new investors.
Of the $28.8 billion in assets, 97.5% are in company stocks with 11.8% of that being from foreign companies. The sectors the stocks are from include healthcare with 22.9% of the fund’s total assets, software with 12.7%, hardware with 12.6%, industrial material with 10.0% and business services with 9.9%. The top 5 holdings of this fund hold a total of 18.09% of the total assets.
The Vanguard PRIMECAP Mutual Fund (VPMCX) is one of the top performers of the Vanguard funds that have consistent and proven results over the years.