Mid-cap growth funds focus on realizing an appreciable amount of capital growth by investing in stocks 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.
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 the majority of its assets in the equity securities of small- and mid-capitalization companies. CHCLX has returned 18.4% over the past three years.
CHCLX has an expense ratio of 0.96% compared with the category average of 1.09%.
Carillon Eagle Mid Cap Growth Fund Class A HAGAX aims for long-term capital growth. The fund invests the majority of assets in the equity securities of medium-capitalization companies. HAGAX invests in those companies that the fund managers believe have good earnings potential or sales growth etc. The fund has returned 17.8% over the past three years.
Bert L. Boksen is one of the fund managers of HAGAX since 1998.
BlackRock Mid-Cap Growth Equity Portfolio Investor A Shares BMGAX aims for long-term capital appreciation. The fund invests the lion’s share of its assets in equity securities of domestic mid-capitalization companies with above-average earnings growth potential. BMGAX has returned 22.4% in the past three years.
As of September 2021, BMGAX held 74 issues, with 3.40% of its assets invested in MSCI Inc.
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.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>