5 Buy Ranked Mid-Cap Growth Funds to Buy
Mid-cap funds are an ideal investment option for investors looking for high return potential that comes with lower risk than small-cap funds. Mid-cap funds are not as susceptible to volatility in broader markets when compared to small and micro-cap stocks, making it a good investment given that macroeconomic conditions have generally offered a roller-coaster ride in recent years. Meanwhile, when capital appreciation over the long term takes precedence over dividend payouts, growth funds become a natural choice 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 when investing in these securities. This is because they may experience relatively more fluctuations than other fund classes.
Below we will share with you 5 top rated mid cap growth mutual funds. Each has earned either a Zacks #1 Rank (Strong Buy) or a Zacks #2 Rank (Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all mid cap growth funds, investors can click here to see the complete list of funds.
T. Rowe Price Mid-Cap Growth (RPMGX) maintains a diversified portfolio by investing a large chunk of its assets in companies having market capitalizations similar to those listed in the S&P MidCap 400 Index or the Russell Midcap Growth Index. RPMGX invests in companies having above-average growth potential. Though RPMGX focuses on acquiring common stocks of domestic companies, RPMGX may also invest in companies located outside the U.S. The T. Rowe Price Mid-Cap Growth fund has returned 18.5% over the past one year.
RPMGX has an expense ratio of 0.77% as compared to category average of 1.29%.
Principal MidCap Growth J (PMGJX) seeks capital appreciation over the long term. PMGJX invests a minimum of 80% of its assets in equities of mid-cap firms. PMGJX focuses on mid-cap growth companies having higher-than-average capital and earnings growth prospects.
Clifford Fox is the fund manager and has managed PMGJX since 2005.
Vanguard Mid Cap Growth Investor (VMGRX) invests a lion’s share of its assets mostly in mid-cap firms. The advisor invests in those mid-cap companies that are believed to have the best future growth prospects.
As of March 2015, VMGRX held 121 issues, with 2.55% of its total assets invested in Biomarin Pharmaceutical Inc.
MFS Mid Cap Growth A (OTCAX) seeks growth of capital. A large chunk of OTCAX’s assets is invested in issuers having medium market capitalization. These issuers have market cap identical to the ones listed in the Russell Midcap Growth Index for the previous 13 months.
OTCAX has an expense ratio of 1.19% as compared to category average of 1.29%
Invesco Mid Cap Growth A (VGRAX) seeks capital appreciation over the long run. VGRAX invests a lion’s share of its assets in mid cap companies that are believed to have impressive growth prospects. VGRAX focuses on acquiring common stocks of companies. The Invesco Mid Cap Growth A fund has returned 12.9% over the past one year.
As of June 2015, VGRAX held 84 issues, with 2.64% of its total assets invested in Palo Alto Networks Inc.
To view the Zacks Rank and past performance of all high yield bond mutual funds, investors can click here to see the complete list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Pick the best mutual funds with the Zacks Rank.
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