Mid-cap growth mutual funds make excellent choices for investors who emphasize 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. Investors can click here to see the complete list of mid-cap growth funds.
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. The fund primarily focuses on acquiring common stocks of companies having an impressive growth prospect. It may also invest in securities issued by foreign companies including those from emerging economies. Janus Enterprise S has a three-year annualized return of 9.1%.
Brian Demain is one of the fund managers of JGRTX since 2007.
JHFunds2 Mid Cap Stock 1 (MUTF:JIMSX) invests a large part of its assets in securities of mid-cap companies with strong capital growth prospect. The fund invests in companies with market cap size within the universe of either the Russell Midcap Index or the S&P MidCap 400 Index. JIMSX may invest a maximum of 25% of its assets in non-U.S. securities, which also include securities from emerging markets. JHFunds2 Mid Cap Stock 1 has a three-year annualized return of 4.4%.
As of October 2016, JIMSX held 95 issues with 3.54% of its assets invested in Uber Technologies Inc. (Private:UBER) Preferred Stock.
Dreyfus Mid Cap Growth F (MUTF:FRSPX) seeks capital growth. FRSPX invests the majority of its assets in securities of companies that fall within the market-cap range of the Russell Midcap Growth Index. The fund invests not only in domestic companies but also in foreign companies. Dreyfus Mid Cap Growth F has a three-year annualized return of 3.5%.
Robert Zeuthen is one of the fund managers since 2010.