Mid-cap growth funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms, the value of which 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 these may experience relatively more fluctuation than other fund classes.
Investors interested in high returns can choose to invest in mid-cap funds that come with lesser risk than small-cap funds. Mid-cap funds are not susceptible to volatility in the broader markets. 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 become a natural choice for investors.
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 peers in the future. Investors can click here to see the complete list of funds.
PGIM Jennison Mid-Cap Growth Fund Class A (PEEAX – Free Report) aims for long-term capital growth. The fund invests majority of its assets in equity and equity-related securities of medium capitalization companies. These companies usually have potential for more-than-average growth. PEEAX has returned 29.1% on a year-to-date basis.
PEEAX has an expense ratio of 1.06% compared with the category average of 1.18%.
Carillon Eagle Mid Cap Growth Fund Class A (HAGAX – Free Report) seeks long-term capital appreciation. The fund invests majority of its assets in equity securities of medium capitalization companies. The fund chooses to invest in those companies that have good growth potential. HAGAX has returned 25.8% on a year-to-date basis.
As of September 2019, HAGAX held 98 issues, with 2.53% of its assets invested in SBA Communications Corp.
Neuberger Berman Mid Cap Growth Fund Class A (NMGAX – Free Report) aims for long-term capital growth. The fund invests majority of its assets in equity securities of medium capitalization companies. The fund defines these companies as those that have market capitalization similar to companies in theRussell Midcap Index. NMGAX chooses to minimize risk by investing across many companies, sectors and industries.The fund has returned 24.7% on a year-to-date basis.
Kenneth J. Turek is the fund manager 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.
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