3 Strong Buy Mid Cap Growth Mutual Funds To Outperform Peers

When capital appreciation over the long term takes precedence over dividend payouts, growth funds become a natural choice 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 when investing in these securities. This is because they may experience relatively more fluctuations than other fund classes.

Below we will share with you 3 top rated mid cap growth mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all mid cap growth funds, investors can click here to see the complete list of funds.

T. Rowe Price Mid-Cap Growth (RPMGX) seeks capital growth over the long run. The fund invests a lion's share of its assets in mid cap companies having impressive growth potential. Companies having market capitalizations similar to those included in the S&P MidCap 400 Index or the Russell Midcap Growth Index are identified as mid cap companies. Besides investing in domestic companies, the fund may also invest in non-U.S. companies. The mid cap growth mutual fund returned 14.4% in the last one year.

The fund has an expense ratio of 0.78% as compared to category average of 1.31%.

Principal MidCap A (PEMGX) invests heavily in companies having medium market capitalizations. It focuses on equities of undervalued companies which are expected to grow at a faster pace in future. The mid cap growth mutual fund returned 13.5% in the last one year.

K. William Nolin is the fund manager and has managed this fund since 2000.

Buffalo Mid Cap (BUFMX) invests a large potion of its assets in mid cap companies having market capitalizations identical to those enlisted in the Russell Midcap Growth Index. It invests in securities including warrants, convertible preferred stocks and common stocks. The mid cap growth mutual fund returned 7.4% in the last one year.

As of September 2014, this fund held 55 issues with 3.12% of its assets invested in CME Group Inc Class A.

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.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank in our Mutual Fund Center.

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