A single minded focus towards capital appreciation is what best characterizes growth funds. This purity of style is further established by the fact that investors can expect few or no dividend pay outs from such mutual funds. But investing in this class of funds requires a relatively higher appetite for risk than those following a value or blend style towards investing. However, in depth research and professional management are what make mutual funds a much safer proposition as compared to directly investing in growth stocks.
Below we will share with you 5 top-rated mid cap growth mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all mid cap growth funds, investors can click here to see the complete list of funds.
Virtus Mid-Cap Value A (FMIVX - MF report) seeks capital appreciation over the long run. It invests a major portion of its assets in mid cap companies having market capitalization similar to those listed in the Russell Midcap Index. It focuses on buying stocks of potential companies which are either distressed or are going through a restructuring phase. The mid cap growth mutual fund has returned 23.4% in the last one year.
The fund has an expense ratio of 1.39% as compared to category average of 1.25%.
Thrivent Mid Cap Stock A (AASCX - MF report) invests a lion’s share of its assets in companies whose market capitalization are identical to those in the Russell Midcap Index or the S&P MidCap 400 Index. It generally acquires common stocks. The mid cap growth mutual fund returned 22.9% in the last one year.
Brian J. Flanagan is the fund manager and has managed this fund since 2004.
Columbia Mid Cap Value A (CMUAX - MF report) seeks long-term capital growth. It invests heavily in companies having market capitalizations within the range of those in the Russell Midcap Value Index. It invests in both value and growth stocks. It may invest a maximum of 20% of its assets in non U.S. companies and may also invest in REITs. The mid cap growth mutual fund returned 22.7% in the last one year.
As of June 2014, this fund held 99 issues with 1.83% of its assets invested in Zimmer Holdings Inc.
Federated MDT Mid Cap Growth Strategies (FGSAX - MF report) invests majority of its assets in domestic mid-cap firms having impressive growth potentials. The market capitalizations of these companies are within the scale of market cap of companies included in the Russell Midcap Growth Index. The mid cap growth mutual fund returned 21.7% in the last one year.
The fund has an expense ratio of 1.22% as compared to category average of 1.33%.
Westcore Select (WTSLX - MF report) seeks capital appreciation over the long run. It invests in 20 to 35 growth oriented companies and having market capitalization identical to those listed in the Russell Midcap Growth Index. It may also invest in small cap companies. It focuses on acquiring only those stocks that are traded in the U.S. This non-diversified mid cap growth mutual fund has returned 19.7% in the last one year.
F. Wiley S. Reed is the fund manager and has managed this fund since 2010.
To view the Zacks Rank and past performance of all mid cap growth mutual funds, investors can click here to see the complete list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.