Best Mutual Fund #3: T. Rowe Price Mid-Cap Growth (RPMGX)
T. Rowe Price Mid-Cap Growth (RPMGX) remains a fine option for investors seeking out growth in medium-sized companies. Manager Brian Berghuis has been in charge of this fund since its 1992 inception, with an excellent track record that has attracted $22 billion in assets for this midcap gem.
Stocks in medium-sized firms are simply not followed by Wall Street with the same intensity as many large-cap names. This provides a fine opportunity for gifted stock pickers to achieve superior results.
Berghuis has long shown his gift in RPMGX — the mutual fund is up 32% YTD and has appreciated an annualized 11.2% over the past decade, placing it in the top 7% of its Morningstar peer group. While growing asset size does raise concerns, it has not hurt fund performance to date. However, RPMGX has moved into some large-cap issues; 12% of the fund is in large company names.
RPMGX is now closed to new retail investors but remains a popular option in many 401k plans. Expenses are 0.8% annually with turnover a modest 30% over the past year.