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4 Mid-Cap Value Mutual Funds to Invest in Amid High Volatility
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Investors in the United States have seen a major reality check from the beginning of 2022. The S&P 500, the DOW & the Nasdaq — have given a negative return of 11.90%, 8.38%, and 19.21%, respectively, so far this year. Various macroeconomic factors and rising geopolitical tensions are significant reasons for the erosion of massive investor wealth.
In the United States, the consumer price index (CPI) for July grew 8.5% year over year, marking a slower annual increase compared to June because of lower gasoline prices, according to the data published by the Bureau of Labor Statistics. However, it is still at a four-decade high and is pinching hard the pockets of an average American. The Federal Reserve has adopted an aggressively hawkish monetary policy to counter sky-high inflation and is expected to continue with its rate hike stance to bring inflation to its desired level of around 2%. Such conditions have resurfaced the fear of recession.
The rising military tension between China and Taiwan, and the incessant Russia-Ukraine war are also contributing to the growing fear among investors. In such turbulent times, mid-cap value mutual funds provide excellent opportunities for investors seeking returns with lesser risk by gaining exposure to mid-cap stocks that are available at a discounted price or undervalued. While large companies are normally known for stability and 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 companies.
We have, thus, selected four mid-cap value mutual funds that have given impressive 3-year and 5-year annualized returns, boast a Zacks Mutual Fund Rank #1 (Strong Buy), offer a minimum initial investment within $5,000 and carry a low expense ratio.
Fidelity Value Fund (FVLKX - Free Report) invests in common stocks of medium-sized companies that possess value fixed assets or are undervalued with respect to factors such as assets, earnings, or growth potential based on the research of Fidelity Management & Research Company LLC (FMR). FVLKX can also invest in domestic or foreign companies, irrespective of its market capitalization.
Matthew Friedman has been the lead manager of FVLKX since May 13, 2010, and most of the fund’s exposure is in sectors such as industrial cyclical, finance and other.
FVLKX has a 3-year and 5-year annualized returns are 14.9% and 10.0%, respectively. The annual expense ratio of 0.73% is lower than the category average of 1.01%. FVLKX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Victory Sycamore Established Value Fund (VEVRX - Free Report) seeks long-term capital growth by investing most of its net assets in equity securities of companies with market capitalization similar to that of companies listed on the Russell MidCap Value Index at the time of purchase. VEVRX also invests a small portion of its net assets in issues of foreign companies that are traded in the United States, including American Depositary Receipts (ADR) and Global Depositary Receipts (GDR).
Gary H. Miller has been the lead manager of HRLTX since Jul 31, 1998, and most of the fund’s exposure is in finance, industrial cyclical and technology.
VEVRX has a 3-year and 5-year annualized returns are 13.9% and 11.6%, respectively. The annual expense ratio of 0.54% is lower than the category average of 1.01%. VEVRX has a Zacks Mutual Fund Rank #1.
Principal MidCap Value Fund I (PVEJX - Free Report) seeks long-term capital growth by investing most of its assets along with borrowings, if any, in equity securities of mid-cap value companies i.e buying equity securities that appear to be undervalued at the time of purchase. PVEJX also invests in real estate investment trusts.
James W. Fennessey has been the lead manager of PVEJX since Jun 2, 2009, and most of the fund’s exposure is in finance, industrial cyclical and technology.
PVEJX has a 3-year and 5-year annualized returns are 11.82% and 9.7%, respectively. The annual expense ratio of 0.87% is lower than the category average of 1.0%. PVEJX has a Zacks Mutual Fund Rank #1.
Fidelity Low-Priced Stock K6 Fund (FLKSX - Free Report) seeks to preserve capital in the downmarket by investing in a portfolio of multiple asset classes. ABRYX generally invests in derivative instruments like futures, options, currency forward contracts and swap agreements.
Joel C. Tillinghast has been the lead manager of FLKSX since May 26, 2017, and most of the fund’s exposure is in sectors such as finance, retail trade and others.
FLKSX has a 3-year and 5-year annualized returns are 11.72% and 9.43%, respectively. The annual expense ratio of 0.50% is lower than the category average of 1.01%. FLKSX has a Zacks Mutual Fund Rank #1.
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4 Mid-Cap Value Mutual Funds to Invest in Amid High Volatility
Investors in the United States have seen a major reality check from the beginning of 2022. The S&P 500, the DOW & the Nasdaq — have given a negative return of 11.90%, 8.38%, and 19.21%, respectively, so far this year. Various macroeconomic factors and rising geopolitical tensions are significant reasons for the erosion of massive investor wealth.
In the United States, the consumer price index (CPI) for July grew 8.5% year over year, marking a slower annual increase compared to June because of lower gasoline prices, according to the data published by the Bureau of Labor Statistics. However, it is still at a four-decade high and is pinching hard the pockets of an average American. The Federal Reserve has adopted an aggressively hawkish monetary policy to counter sky-high inflation and is expected to continue with its rate hike stance to bring inflation to its desired level of around 2%. Such conditions have resurfaced the fear of recession.
The rising military tension between China and Taiwan, and the incessant Russia-Ukraine war are also contributing to the growing fear among investors. In such turbulent times, mid-cap value mutual funds provide excellent opportunities for investors seeking returns with lesser risk by gaining exposure to mid-cap stocks that are available at a discounted price or undervalued. While large companies are normally known for stability and 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 companies.
Mutual funds, in general, reduce transaction costs and diversify their portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have, thus, selected four mid-cap value mutual funds that have given impressive 3-year and 5-year annualized returns, boast a Zacks Mutual Fund Rank #1 (Strong Buy), offer a minimum initial investment within $5,000 and carry a low expense ratio.
Fidelity Value Fund (FVLKX - Free Report) invests in common stocks of medium-sized companies that possess value fixed assets or are undervalued with respect to factors such as assets, earnings, or growth potential based on the research of Fidelity Management & Research Company LLC (FMR). FVLKX can also invest in domestic or foreign companies, irrespective of its market capitalization.
Matthew Friedman has been the lead manager of FVLKX since May 13, 2010, and most of the fund’s exposure is in sectors such as industrial cyclical, finance and other.
FVLKX has a 3-year and 5-year annualized returns are 14.9% and 10.0%, respectively. The annual expense ratio of 0.73% is lower than the category average of 1.01%. FVLKX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Victory Sycamore Established Value Fund (VEVRX - Free Report) seeks long-term capital growth by investing most of its net assets in equity securities of companies with market capitalization similar to that of companies listed on the Russell MidCap Value Index at the time of purchase. VEVRX also invests a small portion of its net assets in issues of foreign companies that are traded in the United States, including American Depositary Receipts (ADR) and Global Depositary Receipts (GDR).
Gary H. Miller has been the lead manager of HRLTX since Jul 31, 1998, and most of the fund’s exposure is in finance, industrial cyclical and technology.
VEVRX has a 3-year and 5-year annualized returns are 13.9% and 11.6%, respectively. The annual expense ratio of 0.54% is lower than the category average of 1.01%. VEVRX has a Zacks Mutual Fund Rank #1.
Principal MidCap Value Fund I (PVEJX - Free Report) seeks long-term capital growth by investing most of its assets along with borrowings, if any, in equity securities of mid-cap value companies i.e buying equity securities that appear to be undervalued at the time of purchase. PVEJX also invests in real estate investment trusts.
James W. Fennessey has been the lead manager of PVEJX since Jun 2, 2009, and most of the fund’s exposure is in finance, industrial cyclical and technology.
PVEJX has a 3-year and 5-year annualized returns are 11.82% and 9.7%, respectively. The annual expense ratio of 0.87% is lower than the category average of 1.0%. PVEJX has a Zacks Mutual Fund Rank #1.
Fidelity Low-Priced Stock K6 Fund (FLKSX - Free Report) seeks to preserve capital in the downmarket by investing in a portfolio of multiple asset classes. ABRYX generally invests in derivative instruments like futures, options, currency forward contracts and swap agreements.
Joel C. Tillinghast has been the lead manager of FLKSX since May 26, 2017, and most of the fund’s exposure is in sectors such as finance, retail trade and others.
FLKSX has a 3-year and 5-year annualized returns are 11.72% and 9.43%, respectively. The annual expense ratio of 0.50% is lower than the category average of 1.01%. FLKSX has a Zacks Mutual Fund Rank #1.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>