Below, we share with you three top-ranked mid-cap growth mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy)
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August 30, 2021 3 min read
This story originally appeared on Zacks
Mid-cap growth funds focus on realizing an appreciable amount of capital growth by investing in stocks that are projected to rally 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 the 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.
Principal MidCap Fund Class A PEMGX aims for long-term growth of capital. The fund invests majority of assets in equity securities of companies with medium market capitalizations at the time of purchase. PEMGX invests in companies with medium market capitalizations and those with market capitalizations within the range of companies comprising the Russell MidcapÂ® Index. The fund has returned 20.3% over the past three years.
PEMGX has an expense ratio of 0.95% compared with the category average of 1.09%.
AB Discovery Growth Fund Class A CHCLX aims for long-term growth of capital. The fund invests primarily in a diversified portfolio of equity securities with relatively smaller capitalizations, investing majority of its assets in the equity securities of small- and mid-capitalization companies. CHCLX has returned 21.5% over the past three years.
Bruce K. Aronow is one of the fund managers of CHCLX since 2008.
Davenport Equity Opportunities Fund DEOPX aims for long-term capital appreciation. This non-diversified fund invests majority of assets in common stocks and in ETFs that invest primarily in common stocks and focuses on superior risk/return opportunities using a flexible, concentrated and opportunistic approach. DEOPX has returned 16.5% over the past three years.
As of June 2021, DEOPX held 30 issues, with 6.88% of its assets invested in DISH Network Corp Class A.
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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