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3 Strong Buy Mid-Cap Value Mutual Funds for Your Portfolio
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The mid-cap value mutual funds provide excellent opportunities for investors looking for returns with lesser risk by gaining exposure to stocks that are available at a discounted price. While large companies are normally known for stability and the smaller ones for growth, mid-caps offer growth and stability simultaneously. Companies with market capitalization between $2 billion and $10 billion are generally considered mid cap.
Meanwhile, value mutual funds are those that invest in stocks trading at discounts to book value and have a low price-to-earnings ratio along with high dividend yields. Value investing is always a coveted strategy, and for a good reason. After all, who doesn’t want to add stocks that have low PEs, a solid outlook and decent dividends? However, not all value funds solely comprise companies that primarily use their earnings to pay out dividends. Investors interested in choosing value funds for yield, should surely check the mutual fund yield.
Fidelity Low-Priced Stock Fund aims for capital appreciation. FLPSX invests primarily in common stocks and invests at least 80% of its assets in low-priced stocks, leading to investments in small and medium-sized companies.
Fidelity Low-Priced Stock Fund has a three-year annualized return of 19.6%. As of the end of October 2021, FLPSX held 893 issues, with 4.7% of its assets invested in UnitedHealth Group Inc.
Fidelity Value Fund aims for capital appreciation. FDVLX invests primarily in common stocks, both domestic and foreign issuers that possess valuable fixed assets or that Fidelity Management & Research Company LLC believes are undervalued in the marketplace in relation to factors such as assets, earnings, or growth potential.
Fidelity Value Fund has a three-year annualized return of 24.9%. Matthew Friedman is the portfolio manager of FDVLX since 2010.
Bridge Builder Small/Mid Cap Value Fund seeks to offer an appreciation of capital. BBVSX invests a large chunk of its assets in securities of both small- and mid-capitalization companies.
Bridge Builder Small/Mid Cap Value Fund invests in both domestic and foreign companies and has three-year annualized returns of 19.8%. BBVSX has an expense ratio of 0.42% as compared with the category average of 1.01%.
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3 Strong Buy Mid-Cap Value Mutual Funds for Your Portfolio
The mid-cap value mutual funds provide excellent opportunities for investors looking for returns with lesser risk by gaining exposure to stocks that are available at a discounted price. While large companies are normally known for stability and the smaller ones for growth, mid-caps offer growth and stability simultaneously. Companies with market capitalization between $2 billion and $10 billion are generally considered mid cap.
Meanwhile, value mutual funds are those that invest in stocks trading at discounts to book value and have a low price-to-earnings ratio along with high dividend yields. Value investing is always a coveted strategy, and for a good reason. After all, who doesn’t want to add stocks that have low PEs, a solid outlook and decent dividends? However, not all value funds solely comprise companies that primarily use their earnings to pay out dividends. Investors interested in choosing value funds for yield, should surely check the mutual fund yield.
Below we share with you three top-ranked mid-cap value mutual funds, viz., Fidelity Low-Priced Stock Fund (FLPSX - Free Report) , Fidelity Value Fund (FDVLX - Free Report) , and Bridge Builder Small/Mid Cap Value Fund (BBVSX - Free Report) . Each has earned a Zacks #1 Rank (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Fidelity Low-Priced Stock Fund aims for capital appreciation. FLPSX invests primarily in common stocks and invests at least 80% of its assets in low-priced stocks, leading to investments in small and medium-sized companies.
Fidelity Low-Priced Stock Fund has a three-year annualized return of 19.6%. As of the end of October 2021, FLPSX held 893 issues, with 4.7% of its assets invested in UnitedHealth Group Inc.
Fidelity Value Fund aims for capital appreciation. FDVLX invests primarily in common stocks, both domestic and foreign issuers that possess valuable fixed assets or that Fidelity Management & Research Company LLC believes are undervalued in the marketplace in relation to factors such as assets, earnings, or growth potential.
Fidelity Value Fund has a three-year annualized return of 24.9%. Matthew Friedman is the portfolio manager of FDVLX since 2010.
Bridge Builder Small/Mid Cap Value Fund seeks to offer an appreciation of capital. BBVSX invests a large chunk of its assets in securities of both small- and mid-capitalization companies.
Bridge Builder Small/Mid Cap Value Fund invests in both domestic and foreign companies and has three-year annualized returns of 19.8%. BBVSX has an expense ratio of 0.42% as compared with the category average of 1.01%.
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.
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