Value stocks are stocks that tend to trade at a price that is lower than its fundamentals (i.e. earnings, book value, Debt-Equity). It is common for some investors to invest in value funds for the income or yield. However, not all value funds are comprised solely of companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield, should be sure to check the mutual fund yield. The mutual fund yield is the dividend payments divided by the value of the mutual fund’s shares. Meanwhile, 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.
Below we will share with you 3 buy-ranked mid cap value mutual funds. Each has earned either a Zacks Mutual Fund Rank #1 (Strong Buy) or a Zacks Mutual Fund Rank #2 (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 value funds, investors can click here to see the complete list of funds.
Managed Account Mid Cap Value Opportunities seeks capital growth. MMCVX invests a lion’s share of its assets in equities of companies having market capitalizations within the universe of the S&P MidCap 400 Value Index. MMCVX may invest not more than 30% in non-US firms. MMCVX may also consider non-dollar denominated securities for investment. The Managed Account Mid Cap Value Opportunities fund has returned 4.1% this year.
As of May 2015, MMCVX held 124 issues with 1.87% of its assets invested in Teleflex Inc.
BMO Mid-Cap Value Y invests a large chunk of its assets domestic mid cap companies having market capitalizations identical to those listed in the Russell Midcap Value Index. MRVEX focuses on value characteristics including impressive dividend yields, below average price-to-book value and price-to-earnings ratio. The BMO Mid-Cap Value Y fund has returned 4% this year.
Matthew B. Fahey is one of the fund managers and has managed MRVEX since 1997.
T. Rowe Price Mid-Cap Value (TRMCX - Free Report) seeks capital growth over the long run. TRMCX invests a major portion of its assets in companies having market capitalizations similar to those included in the S&P MidCap 400 Index or the Russell Midcap Value Index. TRMCX focuses on acquiring securities of companies that are believed to be undervalued. The T. Rowe Price Mid-Cap Value fund has returned 5.3% this year.
TRMCX has an expense ratio of 0.80% as compared to category average of 1.21%.
To view the Zacks Rank and past performance of all mid cap value 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. Pick the best mutual funds with the Zacks Rank.