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3 Federated Hermes Funds to Buy for Attractive Returns

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Federated Hermes, a venerable investment manager with its roots tracing back to 1955, stands as a financial beacon with headquarters nestled in Pittsburgh, PA. Established on Oct 18, 1957, the firm boasts a rich legacy of expertise and innovation in the world of finance.

In a striking testament to its commitment to investors, the average expense ratio across all Federated mutual funds is a compelling 0.57%, reflecting a dedication to delivering optimal value. A remarkable 66.35% of these mutual funds stand as a testament to their commitment to accessibility, characterized as no-load funds, allowing investors to navigate their financial journeys with greater flexibility.

As of Jun 30, 2023, Federated Hermes manages an impressive $704 billion in assets under management, and its commitment to financial prosperity positions them as a preferred choice for investments.

Nonetheless, investing in Federated Hermes mutual funds seems to be judicious as of now. Also, mutual funds, in general, diversify portfolios without several commission charges that are mainly associated with stock purchases and trim transaction costs (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

We have, thus, chosen three Federated Hermes mutual funds that investors should buy now for the long term. These funds possess a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and expense ratios considerably lower than the category average. So, these funds have gave a comparatively strong performance along with lower fees.
 
Federated Hermes MDT Market Neutral Fund (QAMNX - Free Report) aims to attain its goal by choosing long positions in publicly traded common stocks that its quantitative model forecasts will surpass market returns, as well as short positions in publicly traded common stocks anticipated by the fund's quantitative model to achieve below-market returns.

Damien Zhang has been the lead manager of QAMNX since Sep 26, 2021. Most of the fund's holdings were in companies like Federated Hermes, Inc. (7.4%), Expedia Group, Inc. (2.6%), and Teladoc Health, Inc. (2.6%) as of Apr 30, 2023.

QAMNX's 3-year and 5-year annualized returns are 12.9% and 5.7%, respectively. Its net expense ratio is 1.33% compared with the category average of 1.92%. QAMNX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

Federated Hermes MDT Mid Cap Growth Fund (FGSKX - Free Report) invests its most of its assets in mid-cap investments. FGSKX advisors choose mid-cap companies as those similar in size to the ones on the Russell Midcap Growth Index.

Damien Zhang has been the lead manager of FGSKX since Aug 7, 2018. Most of the fund's holdings were in companies like Arista Networks, Inc. (3.6%), Expedia Group, Inc. (3%), and Ulta Beauty, Inc. (2.8%) as of Apr 30, 2023.

FGSKX's 3-year and 5-year annualized returns are 11.7% and 11%, respectively. Its net expense ratio is 0.83% compared with the category average of 1.09%. FGSKX has a Zacks Mutual Fund Rank #2.

Federated Hermes MDT All Cap Core Fund (QKACX - Free Report) invests its assets in the common stock of U.S. companies. QKACX advisors employ a comprehensive all-cap/all-style strategy, primarily selecting investments from firms listed on the Russell 3000 Index.

Damien Zhang has been the lead manager of QKACX since Aug 7, 2018. Most of the fund's holdings were in companies like Apple Inc. (3.6%), Microsoft Corp(3.2%), and Arista Networks, Inc. (2.4%) as of Apr 30, 2023.

QKACX's 3-year and 5-year annualized returns are 16% and 12.5%, respectively. Its net expense ratio is 0.73% compared to the category average of 0.84%. QKACX has a Zacks Mutual Fund Rank #2.
 

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