Mid-cap growth funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms, the value of which 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 fluctuation than the other fund classes.
Investors interested in high returns can choose to invest in mid-cap funds that come with lesser risk than small-cap funds. Mid-cap funds are not susceptible to volatility in the broader markets. This makes these funds ideal bets given the erratic macroeconomic conditions in recent years. Also, when capital appreciation over the long term takes precedence over dividend payouts, growth funds become a natural choice for investors.
Below we share with you three top-ranked mid-cap growth mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the future. Investors can click here to see the complete list of funds.
Madison Mid Cap Fund Class Y (GTSGX - Free Report) aims for long-term capital appreciation. The fund invests the majority of its assets primarily in common stocks, securities convertible and related equity securities of midsize companies between $500 million and $50 billion. The fund has returned 9.8% over the past three years.
GTSGXhas an expense ratio of 0.95% compared with the category average of 1.05%.
John Hancock Funds II Mid Cap Stock Fund Class 1 (JIMSX - Free Report) aims for long-term growth and capital appreciation. The fund invests the majority of its assets in the equity securities of medium-capitalization companies with significant capital appreciation potential. The fund has returned 22.8% over the past three years.
As of June 2020, JIMSX held 79 issues, with 4.26% of its assets invested in Square Inc A.
AB Discovery Growth Fund Class A (CHCLX - Free Report) aims for long-term capital appreciation. The fund invests the majority of its assets in an extensively diversified portfolio of common stocks of small and medium-capitalization companies. CHCLX has returned 19.5% over the past three years.
Bruce K. Aronow is one of the fund managers of CHCLX since 2008.
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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