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Mid-cap funds are ideal investment options for investors looking for high returns that come with lower risk than small-cap funds. Mid-cap funds are not very susceptible to volatility in broader markets. This makes these funds an ideal bet given the fact that macroeconomic conditions have resulted in a rollercoaster ride in the recent years. Meanwhile, when capital appreciation over the long term takes precedence over dividend payouts, growth funds become a natural choice for investors.
These funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms whose value is projected to rise over the long term. However, a relatively higher tolerance to risk and the willingness to park funds for the longer term are necessary when investing in these securities. This is because these may experience relatively more fluctuations than other fund classes.
VALIC Company II Mid Cap Growth seeks to provide growth of capital over the long run. VAMGX invests the large chunk of its assets in equity securities of companies having market capitalizations similar to those listed in the Russell Midcap Index. VAMGX primarily invests in equity securities including common and preferred stocks. VALIC Company II Mid Cap Growth has five-year annualized returns of 9%.
VAMGX has an expense ratio of 0.84% compared with the category average of 1.26%.
Neuberger Berman Mid Cap Growth A (NMGAX - Free Report) invests the lion’s share of its assets in companies having market cap size identical to those included in the Russell Midcap Index. NMGAX maintains a diversified portfolio by investing in common stocks of companies across a wide range of sectors and industries. NMGAX may focus on specific sectors that are expected to gain from market or economic trends. Neuberger Berman Mid Cap Growth A has five-year annualized returns of 10.6%.
Kenneth J. Turek has been the portfolio manager of NMGAX since 2003.
Madison Mid Cap Y (GTSGX - Free Report) seeks appreciation of capital over the long-term. GTSGX invest the major portion of its assets in equity securities of companies with medium size market capitalizations. GTSGX primarily focuses on acquiring common stocks of companies. Madison Mid Cap Y has five-year annualized returns of 7.8%.
As of October 2016, GTSGX held 32 issues, with 5.14% of its assets invested in Copart Inc.
T. Rowe Price Diversified Mid Cap Growth (PRDMX - Free Report) maintains a diversified portfolio by investing heavily in mid-cap companies that are believed to have above-average earnings growth potential. PRDMX focuses on acquiring common stocks of companies having market capitalization similar to those included in the S&P MidCap 400 Index or the Russell Midcap Growth Index. T. Rowe Price Diversified Mid Cap Growth has five-year annualized returns of 14.1%.
PRDMX has an expense ratio of 0.87% compared with the category average of 1.26%.
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4 Mid-Cap Growth Mutual Funds to Invest In
Mid-cap funds are ideal investment options for investors looking for high returns that come with lower risk than small-cap funds. Mid-cap funds are not very susceptible to volatility in broader markets. This makes these funds an ideal bet given the fact that macroeconomic conditions have resulted in a rollercoaster ride in the recent years. Meanwhile, when capital appreciation over the long term takes precedence over dividend payouts, growth funds become a natural choice for investors.
These funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms whose value is projected to rise over the long term. However, a relatively higher tolerance to risk and the willingness to park funds for the longer term are necessary when investing in these securities. This is because these may experience relatively more fluctuations than other fund classes.
Below we share with you three top-rated mid-cap growth 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 growth funds.
VALIC Company II Mid Cap Growth seeks to provide growth of capital over the long run. VAMGX invests the large chunk of its assets in equity securities of companies having market capitalizations similar to those listed in the Russell Midcap Index. VAMGX primarily invests in equity securities including common and preferred stocks. VALIC Company II Mid Cap Growth has five-year annualized returns of 9%.
VAMGX has an expense ratio of 0.84% compared with the category average of 1.26%.
Neuberger Berman Mid Cap Growth A (NMGAX - Free Report) invests the lion’s share of its assets in companies having market cap size identical to those included in the Russell Midcap Index. NMGAX maintains a diversified portfolio by investing in common stocks of companies across a wide range of sectors and industries. NMGAX may focus on specific sectors that are expected to gain from market or economic trends. Neuberger Berman Mid Cap Growth A has five-year annualized returns of 10.6%.
Kenneth J. Turek has been the portfolio manager of NMGAX since 2003.
Madison Mid Cap Y (GTSGX - Free Report) seeks appreciation of capital over the long-term. GTSGX invest the major portion of its assets in equity securities of companies with medium size market capitalizations. GTSGX primarily focuses on acquiring common stocks of companies. Madison Mid Cap Y has five-year annualized returns of 7.8%.
As of October 2016, GTSGX held 32 issues, with 5.14% of its assets invested in Copart Inc.
T. Rowe Price Diversified Mid Cap Growth (PRDMX - Free Report) maintains a diversified portfolio by investing heavily in mid-cap companies that are believed to have above-average earnings growth potential. PRDMX focuses on acquiring common stocks of companies having market capitalization similar to those included in the S&P MidCap 400 Index or the Russell Midcap Growth Index. T. Rowe Price Diversified Mid Cap Growth has five-year annualized returns of 14.1%.
PRDMX has an expense ratio of 0.87% compared with the category average of 1.26%.
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.
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