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 become 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 peers in the future. Investors can click here to see the complete list of funds.
BlackRock Mid-Cap Growth Equity Portfolio Investor A Shares BMGAX aims for capital growth over a long period. The fund invests the majority of its assets in securities of U.S. mid-capitalization companies that its managers believe has potential for above-average growth. BMGAX mostly invests in common stocks of companies, but it may also invest in preferred stock, convertible securities and other equity securities. The fund has returned 19.1% over the past year.
BMGAX has an expense ratio of 1.05% compared with the category average of 1.16%.
Carillon Eagle Mid Cap Growth Fund Class A HAGAX seeks long-term capital growth. The fund invests the majority of its assets in the equity securities of medium-capitalization companies. HAGAX invests in those companies that the fund managers believe have good earnings potential or sales growth etc. The fund has returned 19.4% over the past year.
As of March 2020, HAGAX held 94 issues, with 3.48% of its assets invested in SBA Communications Corp.
T. Rowe Price Diversified Mid Cap Growth Fund PRDMX aims for long-term capital appreciation. The fund invests the majority of its assets in an extensively diversified portfolio of common stocks of medium-capitalization growth companies. The fund’s managers anticipate these companies to have more-than-average potential for growth. PRDMX has returned 16.2% over the past year.
Donald J. Peters is one of the fund managers 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.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Get Your Free (PRDMX): Fund Analysis Report
Get Your Free (HAGAX): Fund Analysis Report
Get Your Free (BMGAX): Fund Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
