Boost your portfolio with these 3 mid-cap growth funds
For high returns, investors can choose mid-cap funds that carry less risk than small caps. Mid-cap funds are unaffected by wider market swings, making them ideal bets given the erratic macroeconomic conditions lately.
Plus, when capital appreciation takes precedence over long-term dividend payouts, growth funds are natural choices for investors. These funds focus on achieving significant capital growth by investing in stocks of companies that are expected to increase in value over the long term.
However, a relatively higher tolerance for risk and a willingness to park funds for the longer term are required when investing in these securities. Indeed, they can experience relatively more fluctuations than other fund categories.
Below, we share with you three top-ranked mid-cap growth mutual funds. Each won 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 full list of funds.
BlackRock Mid-Cap Growth Equity Portfolio Investor Shares A The BMGAX fund aims for long-term capital appreciation. The fund invests the majority of its assets in equity securities of mid-cap US companies, which the fund management believes have the potential for above-average earnings growth. The fund invests primarily in common stocks, preferred stocks, convertible securities and other equity securities. BMGAX has returned 24.8% over the past three years.
At the end of August 2021, BMGAX held 72 issues, with 3.43% of its assets invested in MSCI Inc.
Main Mid-Cap Fund, Class A PEMGX aims for long-term capital growth. The fund invests the majority of its assets in equity securities of companies with a mid-market capitalization at the time of purchase. PEMGX has returned 19.6% over the past three years.
PEMGX has an expense ratio of 0.95% compared to the category average of 1.09%.
Jennison PGIM Mid Cap Growth Fund – Class A PEEAX aims for long-term capital appreciation. The fund invests the majority of its assets in equities and securities linked to equities of mid-sized companies with above-average growth potential. PEEAX has returned 22.9% over the past three years.
Sheetal M. Prasad has been one of the managers of PEEAX since 2017.
To view the Zacks Rankings and past performance of all mid-cap growth mutual funds, investors can click here to see the full list of funds.
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5 actions in the process of doubling
Each was selected by a Zacks expert as the # 1 favorite stock to earn + 100% or more in 2021. Previous recommendations climbed + 143.0%, + 175.9%, + 498.3% and + 673.0%.
Most of the stock in this report is flying under Wall Street’s radar, which provides a great opportunity to get into the ground floor.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.