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3 Mid-Cap Blend Mutual Funds for Fantastic Returns

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Investors interested in comparatively less risky returns through exposure to both growth and value securities may opt for mid-cap blend mutual funds. While mid-cap funds are expected to offer the best of both large- and small-cap ones, blend funds, also known as "hybrid funds," aim for value appreciation by capital gains. Companies with market capitalization between $2 billion and $10 billion are generally considered mid-cap firms.

Moreover, mid-cap funds are believed to provide higher returns than their large-cap counterparts while witnessing a lower level of volatility than the small-cap ones. Blend funds provide significant exposure to both growth and value stocks. These funds owe their origin to a graphical representation of a fund's equity-style box.

Below, we share with you three top-ranked mid-cap blend mutual funds, viz., Vanguard Strategic Equity Inv (VSEQX - Free Report) , DFA US Vector Equity (DFVEX - Free Report) and Fidelity Mid-Cap Stock (FMCSX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.

Vanguard Strategic Equity fund seeks the maximum long-term capital growth by investing primarily in the stocks of small and midsize companies. VSEQX adviser uses computer-driven valuation models to assess valuation criteria such as earnings and cash flow.

Vanguard Strategic Equity has three-year annualized returns of 7.5%. As of June 2024, VSEQX held 554 issues, and 0.9% of its assets were invested in Hewlett Packard Enterprise Co.

DFA US Vector Equity fund invests the majority of its net assets in a diverse group of securities of companies operating in the United States, with a focus on small-cap companies. DFVEX advisors also look at lower relative share price and higher profitability, while making their investment decisions.

DFA US Vector Equity has three-year annualized returns of 6.7%. DFVEX has an expense ratio of 0.28%.

Fidelity Mid-Cap Stock fund seeks long-term growth of capital. FMCSX invests most of its assets in common stocks of companies with medium market capitalization.  

Fidelity Mid-Cap Stock has three-year annualized returns of 6.5%. Nicola Stafford has been one of the fund managers of FMCSX since 2017.

To view the Zacks Rank and past performance of mid-cap cap blend mutual funds, investors can click here to see the complete list of funds.

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