5 Impressive Mid Cap Growth Mutual Funds To Consider

By | May 12, 2015

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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. Meanwhile, mid-cap funds are ideal investment options for investors looking for high return potential that comes with lower risk than small-cap funds. Mid-cap funds are not very susceptible to volatility in broader markets, making it an ideal bet given that the macroeconomic conditions have generally offered a roller-coaster ride in recent years. Below we will share with you 5 potential 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. T. Rowe Price Diversified Mid Cap Growth (MUTF: PRDMX ) maintains a diversified portfolio by investing a lion’s share of its assets in mid-cap companies that are believed to have above-average earnings growth potential. PRDMX focuses on acquiring common stocks of companies having market capitalizations similar to those included in the S&P MidCap 400 Index or the Russell Midcap Growth Index. T. Rowe Price Diversified Mid Cap Growth fund has a three-year annualized return of 17.9%. PRDMX has an expense ratio of 0.89% as compared to category average of 1.31%. Buffalo Mid Cap (MUTF: BUFMX ) seeks capital appreciation over the long run. BUFMX invests a major portion of its assets in domestic companies having market capitalizations identical to those listed in the Russell Midcap Growth Index. BUFMX primarily invests in equity securities including common stocks, preferred stocks and warrants. Buffalo Mid Cap fund has a three-year annualized return of 14.7%. As of December 2014, BUFMX held 53 issues with 3.16% of its assets invested in CME Group Inc Class A. Thrivent Mid Cap Growth A (MUTF: LBMGX ) invests a large chunk of its assets in mid cap firms having market capitalizations within the range of market cap of issuers in popular indices including the Russell Midcap Growth Index or the S&P MidCap 400/Citigroup Growth Index. LBMGX seeks to provide long-term capital appreciation by generally investing in common stocks of companies. Thrivent Mid Cap Growth A fund has a three-year annualized return of more than 14.7%. Andrea J. Thomas is the fund manager and has managed this fund since 1997. Brown Capital Mgmt Mid-Cap Investor (MUTF: BCMSX ) seeks capital growth over the long term. BCMSX invests a majority of its assets in mid-cap companies. BCMSX defines a company as a mid-cap one if it has market capitalization similar to those included in the Russell Midcap Growth Index. BCMSX is expected to maintain a Mid-Cap Fund’s portfolio with a maximum of 5% of its assets in cash. Brown Capital Mgmt Mid-Cap Investor fund has a three-year annualized return of more than 13.4%. BCMSX has an expense ratio of 1.15% as compared to category average of 1.31%. Westcore MIDCO Growth (MUTF: WTMGX ) invests heavily in mid-cap firms that are believed to have an impressive growth potential for earnings and cash flows. WTMGX considers firms having market capitalizations identical to those listed in the Russell Midcap Growth Index. Brown Capital Mgmt Mid-Cap Investor fund has a three-year annualized return of more than 16.6%. As of March 2015, WTMGX held 76 issues with 2.30% of its assets invested in Mead Johnson Nutrition Co. Original Post Scalper1 News

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