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5 Best 401k Mutual Funds for 2014

Maximize your long-term investments with these great funds

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Best Mutual Fund #3: T. Rowe Price Mid-Cap Growth (RPMGX)

t-rowe-price-mid-cap-growth-rpmgx-best-mutual-fundsT. 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.

Recent top holdings include the following: Carmax (KMX), EQT Corp. (EQT), Fiserv (FISV), IDEX Corp. (IEX) and IHS (IHS).

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.

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