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 they may experience relatively more fluctuations than other fund classes.
Below we will share with you 3 top rated mid cap growth mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future.
Harbor Mid Cap Value Investor (HIMVX - Free Report) seeks total return over the long run. The fund invests major portion of its assets in mid cap companies having market capitalizations similar to those included in the Russell Midcap Index. It focuses on acquiring common stocks of undervalued companies having strong growth potential. The mid cap growth mutual fund returned 17.4% in the last one year.
As of September 2014, this fund held 167 issues with 1.57% of its assets invested in Whirlpool Corp.
Thrivent Mid Cap Stock A (AASCX - Free Report) invests a lion’s share of its assets in domestic mid-cap companies whose market capitalization are identical to those in the Russell Midcap Index or the S&P MidCap 400 Index. It focuses on acquiring common stocks. The mid cap growth mutual fund returned 14.8% in the last one year.
The fund has an expense ratio of 1.15% as compared to category average of 1.19%.
Rydex Mid-Cap 1.5x Strategy A (RYAHX - Free Report) seeks 1.5 times return of daily performance of the S&P MidCap 400 Index. The fund invests a large portion of its assets in mid cap companies having market cap similar to those enlisted in the index. It may also invest in other instruments and derivatives. The non-diversified mid cap growth mutual fund returned 16.4% in the last one year.
As of October 2014, this fund held 411 issues with 23.18% of its assets invested in Guggenheim Strategy I.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank in our Mutual Fund Center.