Mid-cap funds are ideal investment options for investors looking for high return potential that comes with lower risk than small-cap funds. Mid-cap funds are not very susceptible to volatility in broader markets, making it an ideal bet given that the macroeconomic conditions have generally offered 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 they may experience relatively more fluctuations than other fund classes.
Below we will share with you 5 potential mid cap growth mutual funds. Each has earned either a Zacks #1 Rank (Strong Buy) or a Zacks #2 Rank (Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all mid cap growth funds, investors can click here to see the complete list of funds.
T. Rowe Price Mid-Cap Growth (RPMGX - Free Report) seeks capital growth over the long run. The fund maintains a diversified portfolio by investing a lion’s share of its assets in companies having market capitalizations similar to those listed in the S&P MidCap 400 Index or the Russell Midcap Growth Index. It invests in companies that are believed to strong earnings growth potential. Though it focuses on acquiring common stocks of domestic companies, the fund may also invest in companies located outside the U.S. The mid cap growth mutual fund has a three-year annualized return of 18.8%.
Brian W.H. Berghuis is the fund manager and has managed this fund since 1992.
Commerce MidCap Growth (CFAGX - Free Report) invests a majority of its assets in mid companies having market capitalizations identical to those included in the Russell Midcap Growth Index. The fund invests in companies that are expected grow at a faster rate than the average company. It may also allocate a notable portion of its assets in companies from the technology domain. The mid cap growth mutual fund has a three-year annualized return of 15.4%.
The fund has an expense ratio of 1.05% as compared to category average of 1.31%.
Thrivent Mid Cap Stock A (AASCX - Free Report) seeks long-term capital appreciation. The fund invests a large portion of its assets in domestic mid-cap companies which have market capitalization within the range of the market capitalization of companies constituting the Russell Midcap Index or the S&P MidCap 400 Index. It focuses on acquiring common stocks. The mid cap growth mutual fund has a three-year annualized return of 16.5%.
As of November 2014, this fund held 83 issues with 3.92% of its assets invested in Southwest Airlines Co.
Government Street Mid-Cap (GVMCX - Free Report) invests heavily in mid cap companies and in ETFs that focuses on acquiring common stocks of mid cap firms. According to the fund’s advisers, companies having market capitalizations ranging from $500 million to $8 billion are considered as mid cap companies. It may invest a maximum of 25% of its assets in ETFs and at most one-fourth share of its assets in non-US issuers. The fund seeks long-term capital growth. The mid cap growth mutual fund has a three-year annualized return of 14.6%.
The fund has an expense ratio of 1.06% as compared to category average of 1.31%.
Turner Midcap Growth Investor seeks capital growth. The fund invests a major share of its assets in mid cap companies that are expected to grow at an impressive rate in terms of earnings. It generally allocates its assets across diversified sectors. The fund may also invest in non-US securities, which may also include ADRs. The mid cap growth mutual fund has a three-year annualized return of 13.2%.
As of January 2015, this fund held 73 issues with 3.26% of its assets invested in Cavium Inc.
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.
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 at www.zacks.com/funds/mutual-funds.