3 Must-Have Mid-Cap Growth Mutual Funds for Sparkling Returns

Zacks Equity Research
·3 min read

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., Congress Mid Cap Growth Fund Retail Class CMIDX, Principal MidCap Fund Class A PEMGX and PGIM Jennison Mid-Cap Growth Fund- Class A PEEAX. 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.

Congress Mid Cap Growth Fund Retail Class aims for long-term capital appreciation. The fund invests the majority of its 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 31.2% in the past three years. As of December 2021, CMIDX held 41 issues, with 2.88% of its assets invested in Floor & Decor Holdings Inc Class A.

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 28.1% 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 29.5% 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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