Investors interested in high returns can choose mid-cap funds that bear lesser risk than small-cap funds. Mid-cap funds are unfazed by the broader market gyrations. 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.
T. Rowe Price Mid-Cap Growth Fund RPMGX aims for long-term capital appreciation. The fund has at least 80% of its net assets invested in a diversified portfolio of common stocks of mid-cap companies. T. Rowe Price expects those mid-cap companies’ earnings to grow at a faster rate than the average company. RPMGX has returned 11.3% in the past three years.
As of the end of June 2020, RPMGX held 136 issues with 2.64% of its assets invested in Teleflex (NYSE:TFX) Inc.
AB Discovery (NASDAQ:DISCA) Growth Fund Class A CHCLX seeks to achieve long-term growth of capital. The fund invests in a diversified portfolio of equity securities, which are of relatively smaller cap-companies as compared to the overall U.S. market. CHCLX has returned 17.9% in the past three years.
CHCLX has an expense ratio of 0.95% compared with the category average of 1.16%.
Neuberger Berman Mid Cap Growth Fund Class A NMGAX aims for growth of capital. The fund invests a large portion of its net assets in common stocks of mid-cap growth companies. The mid-cap growth companies have market capitalization within the range of those companies which make up Russell Midcap Growth Index. NMGAX has returned 14.2% in the past three years.
Kenneth J. Turek is one of the fund managers of NMGAX 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 (RPMGX): Fund Analysis Report
Get Your Free (NMGAX): Fund Analysis Report
Get Your Free (CHCLX): Fund Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research