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Good Large-Growth Funds for Your IRA

The deadline for 2003 IRA contributions is near.

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With April 15th, 2004, approaching, the time to make 2003 contributions to an IRA is running short. Those under 50 can invest up to $3,000 in a Roth or traditional IRA, while those age 50 or more have a $3,500 limit (in all cases annual income limitations exist). Tax-deferred portfolios can grow more quickly than taxable ones, and the gains on Roth IRAs are tax-free. In other words, you don't want to miss this opportunity.

While you can put just about any kind of fund into an IRA, we're highlighting large-growth funds. They can make excellent core funds for a portfolio. And of the nine categories based on the Morningstar Style Box, the bear market hit large-growth funds the hardest. Arguably, they have the most potential upside at this point.

Few investors enjoyed the nasty 2000-2002 downturn, but it provides a handy performance analysis opportunity. Funds that guarded assets on the way down better than peers have proven defensive capability. And those that also participated in the 2003 rally clearly have a decent offense. That's the basis of the search we'll create in our Premium Fund Screener.

Todd Trubey does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.