Mid-cap growth mutual funds make excellent choices for investors who emphasize on investing in securities that offer growth at lesser risk. While large companies are normally known for stability and smaller ones for growth, mid-caps offer the best of both the worlds, allowing growth and stability simultaneously.
Companies with market capitalization between $2 billion and $10 billion with solid growth prospects are generally considered while designing a portfolio of mid-cap growth mutual funds. Also, focusing on growth securities allows these funds to provide more returns, as growth stocks refer to high quality investments with the potential to garner revenue and earnings growth at a rate faster than the industry average.
Below we share with you three top-rated 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.
T. Rowe Price Mid-Cap Growth (MUTF:RPMGX) maintains a diversified portfolio by investing a large chunk of its assets in companies having market capitalization similar to those listed in the S&P MidCap 400 Index or the Russell Midcap Growth Index. RPMGX invests in companies having above-average growth potential. Though RPMGX focuses on acquiring common stocks of domestic companies, RPMGX may also invest in companies located outside the U.S. The fund has a three-year annualized return of 10.4%.
Notably, Brian W.H. Berghuis has been the fund manager of RPMGX since 1992.
DF Dent Midcap Growth (MUTF:DFDMX) invests the majority of its assets in equity securities including common and preferred stocks of mid-cap firms. DFDMX primarily focuses on acquiring securities of companies listed on the U.S. market. The fund may also invest in ADRs, ETFs and REITs. DF Dent Midcap Growth is a non-diversified fund with a three-year annualized return of 5.9%.
DFDMX has an expense ratio of 1.1% as compared to the category average of 1.3%.
Janus Enterprise S (MUTF:JGRTX) seeks long-term growth of capital. JGRTX invests a minimum of half of its assets in securities of companies having market capitalization similar to those included in the Russell Midcap Growth Index. JGRTX primarily focuses on acquiring common stocks of companies having an impressive growth prospect. The fund may also invest in securities issued by foreign companies including those from emerging economies. The Janus Enterprise S fund has a three-year annualized return of 10.7%.
Brian Demain is one of the fund managers of JGRTX since 2007.