3 Best Funds to Play Midcap Growth Stocks

Midcap stocks offer solid returns with far less risk

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3 Best Funds to Play Midcap Growth Stocks

T. Rowe Price Mid-Cap Growth

TRowe185 3 Best Funds to Play Midcap Growth StocksFinally, the T. Rowe Price Mid-Cap Growth (RPMGX) fund isn’t for everyone, but it’s still one of the best mutual funds you can buy in this space. The growth stocks fund is now closed to new retail investors, but it remains a popular 401k plan option.

The “master of midcap” Brian Berghuis has managed this fund since its 1992 inception. One of the best mutual funds out there, the RPMGX is up over 31% year-to-date and has appreciated 11.5% annually over the past decade — good enough to rank in the top 7% of its Morningstar category.

One thing to note: This fund has grown to a whopping $22 billion in assets compared to around $1.4 billion back in 2004, making it tough to manage in a nimble way. In fact, while it’s name still emphasizes midcap growth stocks, it now has about 12% of its portfolio in large-cap stocks.

Despite that shift, this remains one of the best mutual funds for midcap growth stocks since Berghuis is still an excellent stock-picker and because he is backed by the fine research of T. Rowe Price.

Expenses are 0.80% and the fund of growth stocks currently has 139 holdings. Top sectors are industrials and technology, with turnover a rather modest 30% in the last year. Current top holdings include Carmax (KMX), EQT Corp (EQT), Fiserv (FISV) and IDEX (IEX).

As of this writing, Bill Wysor was long POAGX and RFG. 


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/3-best-funds-play-midcap-growth-stocks/.

©2014 InvestorPlace Media, LLC

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