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3 Top-Ranked Mid-Cap Growth to Make Your Portfolio Shine

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Mid-cap growth funds focus on realizing an appreciable amount of capital growth by investing in stocks which are projected to rally 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.

Principal MidCap Fund Class A PEMGX aims for long-term growth of capital. The fund invests majority of assets primarily in equity securities of companies with medium market capitalizations at the time of purchase. PEMGX has returned nearly 11% over the past three years.

PEMGX has an expense ratio of 0.98% compared with the category average of 1.16%.

AB Discovery Growth Fund Class A (CHCLX - Free Report) aims for long-term capital appreciation. The fund invests majority of assets in an extensively diversified portfolio of common stocks of small and medium-capitalization companies. CHCLX has returned 18.8% over the past three years.

Bruce K. Aronow is one of the fund managers of CHCLX since 2008.

T. Rowe Price Diversified Mid Cap Growth Fund PRDMX aims for long-term capital appreciation. The fund invests majority of assets in an extensively diversified portfolio of common stocks of medium-capitalization growth companies. The fund managers anticipate these companies to have more-than-average potential for growth. The fund has returned 15.4% over the past three years.

As of September 2020, PRDMX held 266 issues, with 1.43% of its assets invested in Veeva Systems Inc Class A.

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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