Investors interested in high returns can choose mid-cap funds that bear lesser risk than small-cap funds. Mid-cap funds are immune to gyrations in the broader market. 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 natural choices for investors. These funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms, whose value 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 while investing in these securities. This is because these may experience relatively more fluctuations than the other fund classes.
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 funds.
Carillon Eagle Mid Cap Growth Fund Class A (HAGAX - Free Report) aims for long-term capital growth. The fund invests the majority of its assets in equity securities of mid-capitalization companies. The fund mostly invests in those companies that have the potential for above-average earnings or revenue growth. HAGAX has returned 6.2% in the past three years.
As of Mar 31, 2020, HAGAX held 94 issues with 3.48% of its assets invested in SBA Communications Corp.
Neuberger Berman Mid Cap Growth Fund Class A (NMGAX - Free Report) aims for capital growth. The fund invests the majority of its assets in securities of medium-capitalization companies. Its investments are mostly in common stocks of companies that have total market capitalization similar to those included on the Russell Midcap Index at the time of purchase. NMGAX has returned 6.1% in the past three years.
NMGAX has an expense ratio of 1.08% compared with the category average of 1.17%.
T. Rowe Price Diversified Mid Cap Growth Fund (PRDMX - Free Report) aims for capital growth over a long period. The fund invests the majority of its assets in securities of medium capitalization companies. These companies, according to the fund, are those whose market capitalization is within the range of either the S&P MidCap 400 Index or the Russell Midcap Growth Index. PRDMX mostly invests in common stocks. The fund has returned 6.8% in the past three years.
Donald J. Peters is the fund manager of PRDMX 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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