Investors interested in deriving safer returns by allocating their assets in undervalued securities may consider mid-cap value mutual funds. While mid caps offer the best of both large- and small-cap mutual funds, allowing growth and stability simultaneously, value funds are common for income or yield. Value funds are those that tend to trade at prices lower than their fundamentals (i.e. earnings, book value, debt-to-equity). However, not all value funds solely comprise companies that primarily use their earnings to pay dividends.
Meanwhile, companies with market capitalization between $2 billion and $10 billion are generally considered mid-cap firms. While mid-cap funds are expected to have a higher growth potential than the large-cap ones, they are believed to experience a lower level of volatility than their small-cap counterparts.
Below we share with you three top-rated mid-cap value 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 value funds, their Zacks Rank and past performance.
Managed Account Mid Cap Value Opportunities ( MMCVX ) invests the lion's share of its assets in equity securities of companies with market capitalization similar to those listed in the S&P MidCap 400 Value Index. MMCVX may invest not more than 30% of its assets in foreign securities and in securities that are denominated in foreign currencies. Managed Account Mid Cap Value Opportunities has a year-to-date return of almost 6.2%.
As of March 2016, MMCVX held 123 issues with 1.96% of its assets invested in Albemarle Corp.
Perkins Mid Cap Value D ( JNMCX ) seeks long-term capital growth. JNMCX invests a large chunk of its assets in 'value' stocks of companies having market capitalization within the range of the Russell Midcap Value Index. The fund focuses on investing in common stocks of companies. JNMCX may also invest not more than one-fifth of its assets in companies other than mid cap firms. Perkins Mid Cap Value D has a year-to-date return of almost 4%.
JNMCX has an expense ratio of 0.58% as compared to the category average of 1.18%.
American Beacon Mid Cap Value Investor ( AMPAX ) invests a major portion of its assets in equity securities of companies with market capitalization within the range of the Russell Midcap Index. AMPAX primarily focuses on acquiring securities of companies domiciled in the U.S. American Beacon Mid Cap Value Investor has a year-to-date return of almost 3.9%.
As of February 2016, AMPAX held 118 issues with 4.54% of its assets invested in S+p Mid 400 Emini Mar16 Xcme 20160318.
To view the Zacks Rank and past performance of all mid-cap value mutual funds, investors can click here to see the complete list of funds .
About Zacks Mutual Fund Rank
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