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3 Zacks Rank #1 Mid-Cap Blend Mutual Funds

Investors interested in comparatively less risky returns through exposure to both growth and value securities may opt for mid-cap blend mutual funds. While mid-cap funds are expected to offer the best of both large- and small-cap ones, blend funds, also known as “hybrid funds,” aim for value appreciation by capital gains. Companies with market capitalization between $2 billion and $10 billion are generally considered as mid-cap firms.

Moreover, mid-cap funds are believed to provide higher returns than their large-cap counterparts, while witnessing a lower level of volatility than small-cap ones. Meanwhile, blend funds provide a significant exposure to both growth and value stocks. It owes its origin to a graphical representation of a fund’s equity style box.

Below we will share with you three top-rated mid-cap blend 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 blend funds, investors can click here to see the complete list of funds .

ClearBridge Mid Cap 1 (SMCPX) seeks capital appreciation over the long run. SMCPX invests a major portion of its assets in equity securities of medium-sized companies. The fund may invest a maximum 20% of its assets in equity securities of companies other than medium capitalization companies. Moreover, SBMAX may invest up to 25% of its assets in securities of foreign issuers. ClearBridge Mid Cap 1 has a three-month return of 11.9%.

SMCPX has an expense ratio of 0.90% compared with the category average of 1.16%.

AMG Managers Cadence Mid Cap Investor (MCMAX) invests a large chunk of its assets in securities of companies with market capitalizations similar to those listed in the Russell Midcap Index. MCMAX primarily focuses on acquiring common stocks of companies, which may also include REITs. The fund is expected to maintain a portfolio of around 70–95 securities. AMG Managers Cadence Mid Cap Investor has a three-month return of 9.5%.

As of March 2016, MCMAX held 90 issues, with 2.14% of its total assets invested in The Ultimate Software Group, Inc.

Vanguard Strategic Equity Investor (VSEQX) seeks long-term capital growth. VSEQX invests in both small and medium-sized companies that are believed to have strong growth prospects and reasonable valuation compared to its peers. The fund’s advisor applies a quantitative process to assess all the securities in its benchmarks that include the MSCI US Small and Mid-Cap 2200 Index. A large portion of its assets are invested in equity securities. Vanguard Strategic Equity Investor has a three-month return of 14.3%.

Binbin P. Guo is one of the fund managers of VSEQX since this January.

To view the Zacks Rank and past performance of all mid cap blend 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 at www.zacks.com/funds/mutual-funds.


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