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3 Mid-Cap Growth to Make Your Portfolio Impressive

Below, we share with you three top-ranked mid-cap growth mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy).

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This story originally appeared on Zacks

Mid-cap growth funds focus on realizing an appreciable amount of capital growth by investing in stocks projected to rally over the long term. However, a relatively higher tolerance to risk and the willingness to park funds for the long term are necessary for investing in these securities. This is because these securities may experience relatively more fluctuation than the other fund classes.

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Investors interested in high returns can choose to invest in mid-cap funds with lesser risk than small-cap funds. Mid-cap funds are not susceptible to volatility in the broader markets. This makes these funds ideal bets given the erratic macroeconomic conditions in recent years. Also, when capital appreciation over the long term takes precedence over dividend payouts, growth funds become a natural choice for investors.

Below, we share with you three top-ranked mid-cap growth mutual funds, viz., AB Discovery Growth Fund Class A CHCLX, T. Rowe Price Mid-Cap Growth Fund RPMGX and Congress Mid Cap Growth Fund Retail Class CMIDX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the future. Investors can click here to see the complete list of funds.

AB Discovery Growth Fund Class Aaims for long-term growth of capital. The fund 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 24.9% over the past three years. CHCLX has an expense ratio of 0.96% compared with the category average of 1.09%.

T. Rowe Price Mid-Cap Growth Fund aims for long-term capital appreciation. The fund invests the majority of assets in a diversified portfolio of common stocks of mid-cap companies whose earnings T. Rowe Price expects will grow faster than other firms.

T. Rowe Price Mid-Cap Growth Fund has returned 18.6% over the past three years. Brian W.H. Berghuis is the fund manager of RPMGX since 1992.

Congress Mid Cap Growth Fund Retail Class aims for long-term capital appreciation. The fund invests the majority of assets in publicly-traded stocks of U.S. companies which the advisor considers to have a mid-size market capitalization.

Congress Mid Cap Growth Fund Retail Class has returned 26.4% in the past three years. As of November 2021, CMIDX held 41 issues, with 3.22% of its assets invested in Monolithic Power Systems Inc.

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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