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 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.
Azzad Ethical (ADJEX - Free Report) seeks to offer returns for the long run similar to the fund adviser’s ethical standards. ADJEX invests a bulk of its assets in securities of mid-cap companies that are included on the Russell Midcap Growth Index. The fund invests heavily in securities that will meet its ethical investment principles. Azzad Ethical has one-year annualized returns of 17.4%.
As of June 2018, ADJEX held 161 issues, with 2.03% of its assets invested in Citrix Systems Inc.
T. Rowe Price Mid-Cap Growth Advisor (PAMCX - Free Report) seeks appreciation of capital for the long run. PAMCX maintains a diversified portfolio by investing in common stocks of mid-cap companies, earnings of which are expected to have above-average growth prospects. Companies that fall within the range of the Russell Midcap Growth Index or S&P MidCap 400 Index are considered mid cap. T. Rowe Price Mid-Cap Growth Advisor has one-year annualized returns of 14.1%.
PAMCX has an expense ratio of 1.01% compared with the category average of 1.21%.
Prudential Jennison Mid-Cap Growth A (PEEAX - Free Report) invests a large chunk of its assets in equity and related securities of mid-cap companies, which have above-average growth prospects. PEEAX seeks appreciation of capital for the long run. Prudential Jennison Mid-Cap Growth A has one-year annualized returns of 12.9%.
John P. Mullman is one of the fund managers of PEEAX since 2005.
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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