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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 them a good bet 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 . Invesco Mid Cap Growth Fund A (MUTF: VGRAX ) seeks capital appreciation over the long run. The fund 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 Fund A has returned 12.1% over the past one year. James Leach is the fund manager and has managed VGRAX since 2011. T. Rowe Price Mid Cap Growth Fund No Load (MUTF: RPMGX ) maintains a diversified portfolio by investing a large chunk of its assets in companies having market capitalizations similar to those listed on the S&P MidCap 400 Index or the Russell Midcap Growth Index. The fund invests in companies having above-average growth potential. Though RPMGX focuses on acquiring common stocks of domestic companies, it may also invest in companies located outside the U.S. The T. Rowe Price Mid-Cap Growth fund has returned 16.2% over the past one year. RPMGX has an expense ratio of 0.77%, as compared to a category average of 1.30%. Vantagepoint Aggressive Opportunities Fund No Load (MUTF: VPAOX ) seeks long-term capital growth. It generally invests in common stocks of growth companies included in the Russell Midcap Index. VPAOX invests in stocks listed in the Russell Midcap Growth Index. The fund may also invest in small-cap companies with growth prospects. The Vantagepoint Aggressive Opportunities Investor fund has returned 8.3% over the past one year. As of April 2015, VPAOX held 627 issues, with 1.48% of its assets invested in SBA Communications Corp (NASDAQ: SBAC ). AMG Managers Brandywine Advisors Mid Cap Growth Fund No Load (MUTF: BWAFX ) invests a major portion of its assets in mid-cap companies that are witnessing a growth rate of a minimum of 20% a year. The fund primarily focuses on acquiring common stocks of domestic companies. It may also invest a small portion of its assets in non-U.S. firms that are traded in the U.S. The AMG Managers Brandywine Advisors Mid Cap Growth Fund has returned 7.5% over the past one year. Scott W. Gates is the fund manager and has managed VGRAX since 2010. Government Street Mid Cap Fund No Load (MUTF: GVMCX ) seeks capital growth over the long term. The fund invests heavily in common stocks of mid-cap companies having market capitalizations between $500 million and $8 billion. GVMCX may also invest not more than 25% of its assets in mid-cap ETFs. A maximum of one-fourth of GVMCX’s assets may be invested in non-US securities. The Government Street Mid-Cap fund has returned 6.1% over the past one year. GVMCX has an expense ratio of 1.06%, as compared to a category average of 1.30%. Original Post Scalper1 News
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