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Investors interested in high returns can choose mid-cap funds that bear lesser risk than small-cap funds. Mid-cap funds are not susceptible to gyrations 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 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 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 mid-cap growth funds.
Azzad Ethical ADJEX seeks to offer returns for the long run ot par with the fund adviser’s ethical standards. ADJEX invests a bulk of its assets in securities of mid-cap companies that are included on the Russell Midcap Growth Index. The fund invests heavily in securities that will meet its ethical investment principles. Azzad Ethical has one-year annualized returns of 15.9%.
As of February 2018, ADJEX held 166 issues, with 2.08% of its assets invested in Moody's Corporation.
Fidelity Advisor Stock Selector Mid Cap M FMCAX invests a large chunk of its assets in mid-cap companies, whose market cap is similar to those included on the S&P MidCap 400 Index or the Russell Midcap Index. The fund invests in both U.S. and non-U.S. companies. FMCAX seeks capital growth for the long run. Fidelity Advisor Stock Selector Mid Cap M has returned 12.5% in the last one-year period.
Douglas Simmons is one of the fund managers of FMCAX since 2011.
T. Rowe Price Mid-Cap Growth Advisor PAMCX seeks appreciation of capital for the long run. PAMCX maintains a diversified portfolio by investing in common stocks of mid-cap companies, earnings of which are expected to have above-average growth prospects. Companies that fall within the range of the Russell Midcap Growth Index or S&P MidCap 400 Index are considered mid cap. T. Rowe Price Mid-Cap Growth Advisor has one-year annualized returns of 20%.
PAMCX has an expense ratio of 1.01% compared with the category average of 1.21%.
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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