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 four 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.
Commerce MidCap Growth CFAGX invests a chunk of its assets in common stocks of mid-cap companies included on the Russell Midcap Growth Index. CFAGX seeks appreciation of capital for the long run. The fund invests in those mid-cap companies that had below-average price volatility level. Commerce MidCap Growth has registered three-year annualized returns of 9.4%.
CFAGX has an expense ratio of 0.83% compared with the category average of 1.20%.
Principal MidCap S&P 400 Index Inst MPSIX seeks to provide long-term capital appreciation by investing at least 80% of its net assets in securities of companies that are part of the Standard & Poor's MidCap 400 Index at the time of buying. MPSIX has returned 7.4% in the past three years.
Jeffrey A. Schwarte is one of the fund managers of MPSIX since 2016.
Voya MidCap Opportunities Port S ISMOX aims long-term capital appreciation by investing 80% of its net assets in common stocks of medium-sized companies that are based in the United States. The fund may also invest in securities related to real estate including REITs. Voya MidCap Opportunities has registered three-year annualized returns of 7.2%.
As of January 2019, ISMOX held 71 issues, with 3.16% of its assets invested in Fiserv Inc.
Principal MidCap S&P 400 Index J PMFJX seeks to provide long-term capital appreciation by investing a minimum of 80% of its net assets in securities of companies that comprise the S&P MidCap 400 Index at the time of purchase. Principal MidCap has registered three-year annualized returns of 7.1%.
PMFJX has an expense ratio of 0.39% compared with the category average of 1.06%.
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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