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Buy 3 Top-Ranked Mid-Cap Growth Mutual Funds for High Gains

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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 fluctuation than the 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.

Baird MidCap Investor (BMDSX - Free Report) seeks capital growth for the long run. BMDSX invests the bulk of its assets in equity securities of domestic and foreign mid-cap companies. The fund focuses on investing mainly in common and preferred stocks, and in ADRs that are traded on key U.S. exchanges. Baird MidCap Investor has one-year annualized returns of 21.6%.

As of March 2018, BMDSX held 59 issues, with 2.52% of its assets invested in Broadridge Financial Solutions Inc. 

Commerce MidCap Growth (CFAGX - Free Report) invests a large chunk of its assets in common stocks of mid-cap companies, which are included on the Russell Midcap Growth Index. CFAGX seeks growth of capital for the long run. Commerce MidCap Growth has registered one-year annualized returns of 15.9%.

CFAGX has an expense ratio of 0.83% compared with the category average of 1.19%.

Neuberger Berman Mid Cap Growth A (NMGAX - Free Report) seeks appreciation of capital. NMGAX invests a huge portion of its assets in common stocks of mid-cap companies that have market-cap similar to those included on the Russell Midcap Index. Neuberger Berman Mid Cap Growth A has one-year annualized returns of 20.9%.

Kenneth J. Turek is the fund manager of NMGAX since 2003.

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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