4 Top-Ranked Mid-Cap Growth Mutual Funds
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. 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 share with you 4 top-rated, mid-cap growth mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy), and we expect the fund to outperform its peers in the future. T. Rowe Price Mid-Cap Growth (MUTF: 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 a three-year annualized return of 17.8%. Brian W.H. Berghuis is the fund manager of RPMGX since 1992. Principal MidCap A (MUTF: PEMGX ) seeks capital appreciation over the long run. PEMGX invests a lion’s share of its assets in equity securities of companies with medium size market capitalizations. Though PEMGX invests in both value and growth stocks of companies, PEMGX currently emphasizes on growth stocks. The Principal MidCap A fund has a three-year annualized return of 14.4%. As of November 2015, PEMGX held 94 issues with 4.46% of its assets invested in Brookfield Asset Management Inc. Class A. DF Dent Midcap Growth (MUTF: DFDMX ) invests majority of its assets in equity securities including common and preferred stocks of mid-cap firms. DFDMX primarily focuses on acquiring securities of companies listed in the U.S. market. DFDMX may also invest in ADRs, ETFs and REITs. The Principal MidCap A is a non-diversified fund and has a three-year annualized return of 13.5%. DFDMX has an expense ratio of 1.10% as compared to the category average of 1.28%. Vanguard Mid-Cap Growth Investor (MUTF: VMGRX ) seeks long-term capital growth. VMGRX invests a major portion of its assets in the securities of mid-cap companies. VMGRX primarily emphasizes acquiring common stocks of companies having above-average growth potential. The Vanguard Mid-Cap Growth Investor fund has a three-year annualized return of 14%. As of September 2015, VMGRX held 100 issues with 2.83% of its assets invested in Old Dominion Freight Line, Inc. (NASDAQ: ODFL ). Original Post