For high returns, investors can choose mid-cap funds that bear lesser risk than small caps. Mid-cap funds are unfazed by broader market gyrations, making them ideal bets given the erratic macroeconomic conditions of late.
Also, when capital appreciation takes precedence over dividend payouts over the long term, growth funds are natural choices for investors. These funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms whose value is projected to rise over the long term.
However, a relatively higher tolerance to risk and the willingness to park funds for the longer term are necessary while investing in these securities. This is because these may experience relatively more fluctuations than the other fund classes.
Below we share with you three top-ranked mid-cap growth mutual funds, viz., AB Discovery Growth Fund Class A (CHCLX – Free Report) , Principal MidCap Fund Class A (PEMGX – Free Report) , and PGIM Jennison Mid-Cap Growth Fund- Class A (PEEAX – Free Report) . 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 funds.
AB Discovery Growth Fund Class A aims for long-term growth of capital. CHCLX 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.
AB Discovery Growth Fund Class A has returned 27.1% over the past three years. As of the end of September 2021, CHCLX held 94 issues, with 2.2% of its assets invested in Repligen Corp.
Principal MidCap Fund Class A aims for the long-term growth of capital. PEMGX invests the majority of its assets in equity securities of companies with medium market capitalizations at the time of purchase.
Principal MidCap Fund Class A has returned 24.8% over the past three years. PEMGX has an expense ratio of 0.95% compared with the category average of 1.09%.
PGIM Jennison Mid-Cap Growth Fund- Class A aims for long-term capital appreciation. The fund invests the majority of its assets in equity and equity-related securities of medium-sized companies with the potential for above-average growth.
PGIM Jennison Mid-Cap Growth Fund- Class A has returned 27.5% over the past three years. Sheetal M. Prasad is one of the fund managers of PEEAX since 2017.
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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