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4 Zacks Rank #1 Mid-Cap Growth Funds to Buy

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Mid-cap funds are favourable investment options for those seeing high returns that come with lower risk than small-cap funds. Mid-cap funds are not susceptible to volatility in broader markets. This makes these funds ideal bets given the fact that macroeconomic conditions have resulted in a roller-coaster ride in 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 four 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.

PRIMECAP Odyssey Aggressive Growth (POAGX - Free Report) seeks to provide long-term capital appreciation. POAGX invests primarily in the common stocks of U.S. companies, especially those with prospects for rapid earnings growth. The fund may also invest in common stocks of companies from different market sectors. PRIMECAP Odyssey Aggressive Growth has one-year annualized returns of 40.9%.

M. Ansari is one of the fund managers of POAGX since 2012.

Principal MidCap Growth J (PMGJX - Free Report) invests a minimum of 80% of its assets in equities of mid-cap firms. PMGJX seeks capital appreciation over the long term. PMGJX focuses on mid-cap growth companies having higher-than-average capital and earnings growth prospects.Principal MidCap Growth J has one-year annualized returns of 30.9%.

PMGJX has an expense ratio of 1.03% compared with the category average of 1.29%.

MassMutual Select Mid Cap Growth Equity II Administrative (MMELX - Free Report) seeks capital growth for the long run. MMELX invests a bulk of its assets in equity securities of mid-cap companies which are expected to have a high level of growth potential. MassMutual Select Mid Cap Growth Equity II Administrativehas one-year annualized returns of 27.9%.

As of December 2016, MMELX held 201 issues with 1.81% of its assets invested in Textron Inc.

Voya MidCap Opportunities Portfolio I (IIMOX - Free Report) normally invests the lion’s share of its assets in common stocks of mid-cap domestic companies. IIMOX seeks appreciation of capital in the long run. The fund generally invests in mid-cap companies that are expected to have strong growth prospects. Voya MidCap Opportunities Portfolio Ihas one-year annualized returns of 29%.

IIMOXhas an expense ratio of 0.81% compared with the category average of 1.29%.

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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