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3 Mid-Cap Blend Mutual Funds for Impressive 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 caps, 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. Meanwhile, 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 mid-cap blend mutual funds, viz., Fidelity Advisor Mortgage Securities (FMSCX - Free Report) ,Vanguard Strategic Equity Inv (VSEQX - Free Report) and DFA US Vector Equity (DFVEX - Free Report) . Each has 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 technology funds.

Fidelity Advisor Mortgage Securities seeks long-term growth of capital. FMSCX invests at least 80% of assets in common stocks of companies with medium market capitalization (those with market capitalization similar to companies in the Russell Midcap Index or the S&P MidCap 400). 

Fidelity Mega Cap Stock has three-year annualized returns of 6.5%. As of the end of October 2024, FMSCX held 176 issues, with 1.4% of its assets invested in Performance Food Group Co.

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

Vanguard Strategic Equity Inv has three-year annualized returns of 9%. VSEQX has an expense ratio of 0.17%.

DFA US Vector Equity fund invests most of its net assets in a broad and diverse group of companies operating in the United States with high exposure in smaller-capitalization, lower relative price, and higher profitability companies. DFVEX advisors choose to invest in a weighted set of U.S. operating companies listed on the U.S. securities exchange.

DFA US Vector Equity has three-year annualized returns of 8.3%. Jed S. Fogdall has been the fund manager of DFVEX since February 2012.

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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