Mid-cap growth funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms, the value of which is projected to rise over the long term. However, a relatively higher tolerance to risk and the willingness to park funds for the longer term are necessary when investing in these securities. This is because these may experience relatively more fluctuations than other fund classes.
Investors interested in high returns can choose to invest in mid-cap funds that come with lesser risk than small-cap funds. Mid-cap funds are not susceptible to volatility in the broader markets. This makes these funds ideal bets given the erratic macroeconomic conditions in recent years. Also, when capital appreciation over the long term takes precedence over dividend payouts, growth funds are a natural choice for investors.
Below we share with you three top-ranked mid-cap growth mutual funds. 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 mid-cap growth funds.
T. Rowe Price Mid-Cap Growth (RPMGX - Free Report) seeks capital growth for the long run. RPMGX invests a large chunk of its assets in common stocks of mid-cap companies, which T. Rowe Price belies to have above-average growth potential. Per the fund’s advisor mid-cap companies are those, whose market-cap is similar to those included in the Russell Midcap Growth Index or the S&P MidCap 400 Index. T. Rowe Price Mid-Cap Growth has one-year annualized returns of 21.3%.
As of December 2017, RPMGX held 134 issues with 4.86% of its assets invested in Reserve Invt Fds.
Prudential Jennison Mid-Cap Growth A (PEEAX - Free Report) invests a bulk of its assets in equity and related securities of mid-cap companies, which bear above-average growth prospects. PEEAX seeks growth of capital for the long run. Prudential Jennison Mid-Cap Growth Ahas one-year annualized returns of 15.4%.
PEEAX has an expense ratio of 1.06% compared with the category average of 1.22%.
Waddell & Reed New Concepts Y seeks appreciation of capital for the long run. UNEYX invests mainly in common stocks of those companies, which WRIMCO expects to offer above-average growth potential and are of high quality. The fund focuses on those mid-cap companies that falls within the range of the Russell Midcap Growth Index.Waddell & Reed New Concepts Y has one-year annualized returns of 23.3%.
Nathan Brown is one of the fund managers of UNEYX since 2016.
To view the Zacks Rank and past performance of all mid-cap growth mutual funds, investors can click here to see the complete list of funds.
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