Back to top

Image: Bigstock

Invest in These 3 Mid-Cap Value Funds for Impressive Returns

Read MoreHide Full Article

Investors interested in deriving safer returns by allocating their assets in undervalued securities may consider mid-cap value mutual funds. While mid-caps offer the best of both large- and small-cap mutual funds, allowing growth and stability simultaneously, value funds are known for income or yield. Value funds tend to trade at prices lower than their fundamentals (i.e. earnings, book value, debt to equity). However, not all value funds solely comprise companies that primarily use their earnings to pay out dividends.

Meanwhile, companies with market capitalization between $2 billion and $10 billion are generally considered mid-cap firms. While these funds are expected to have a higher growth potential than the large-cap ones, they are believed to experience a lower level of volatility than their small-cap counterparts.

Below we share with you three top-rated mid-cap value mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of mid-cap value funds.

T. Rowe Price Mid-Cap Value (FDVLX - Free Report) aims for capital appreciation. The fund invests primarily in common stocks, both domestic and foreign issuers that possess valuable fixed assets or that Fidelity Management & Research Company LLC believes are undervalued in the marketplace in relation to factors such as assets, earnings, or growth potential. FDVLX has a three-year annualized return of 13.4%.

Matthew Friedman is the portfolio manager of FDVLX since 2010.

Fidelity Mid Cap Value Fund (FSMVX - Free Report)  invests a large chunk of its assets in securities of those mid-cap companies that have market capitalizations similar to those included on the S&P MidCap 400 Index or the Russell Midcap Index. The fund seeks capital growth for the long run. FSMVX invests in both U.S. and non-U.S. companies. FSMVX has returned 8.8% over the last three-year period.

As of September 2021, FSMVX held 100 issues, with 3.95% of its assets invested in CBRE Group Inc Class A.

Fidelity Low-Priced Stock Fund (FLPSX - Free Report)  aims for capital appreciation. The fund invests primarily in common stocks and invests at least 80% of its assets in low-priced stocks, leading to investments in small and medium-sized companies. FLPSX has a three-year annualized return of 11.8%.

FLPSX has an expense ratio of 0.78% as compared with the category average of 1.01%.

To view the Zacks Rank and past performance of all All-cap value mutual funds, investors can click here to see the complete list of all-cap value funds.

Want key mutual fund info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Fidelity Value (FDVLX) - free report >>

FIDELITY LOW PRICED STOCK FD (FLPSX) - free report >>

Fidelity Mid Cap Value (FSMVX) - free report >>

Published in