Value stocks are stocks that tend to trade at a price that is lower than its fundamentals (i.e. earnings, book value, Debt-Equity). It is common for some investors to invest in value funds for the income or yield. However, not all value funds are comprised solely of companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield, should be sure to check the mutual fund yield. The mutual fund yield is the dividend payments divided by the value of the mutual fund’s shares. Meanwhile, mid-cap funds are ideal investment options for investors looking for high return potential that comes with lower risk than small-cap funds. Mid-cap funds are not very susceptible to volatility in broader markets, making it an ideal investment given that the macroeconomic conditions have generally offered a roller-coaster ride in recent years.
Below we will share with you 5 potential mid cap value mutual funds. Each has earned either a Zacks #1 Rank (Strong Buy) or a Zacks #2 Rank (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 value funds, investors can click here to see the complete list of funds.
Sterling Capital Mid Value A (OVEAX - MF report) seeks capital appreciation over the long run. The fund generally invests in value stocks of mid cap companies. It invests in companies having market capitalizations between $1 billion and $30 billion. The fund focuses on acquiring equities of domestic companies and foreign stocks that are in the U.S. markets. The mid cap value mutual fund returned 10.9% in the last one year.
The fund has an expense ratio of 1.18% as compared to category average of 1.23%.
Thrivent Partner Mid Cap Value A (TPMAX - MF report) invests a lion’s share of its assets in companies having market capitalization identical to those listed in the Russell Midcap Value Index. Though, the fund concentrates on domestic companies, it may allocate a maximum of 25% of its assets in non-U.S. companies including those from emerging nations. The mid cap value mutual fund returned 9.1% in the last one year.
As of December 2014, this fund held 106 issues with 2.06% of its assets invested in FirstEnergy Corp (FE).
T. Rowe Price Mid-Cap Value (TRMCX - MF report) seeks capital growth over the long run. The fund invests a major portion of its assets in companies having market capitalization similar to those included in the S&P MidCap 400 Index or the Russell Midcap Value Index. The fund may allocate a small share of its assets in non-U.S. firms. The mid cap value mutual fund returned 9.5% in the last one year.
David J. Wallack is the fund manager and has managed this fund since 2000.
Lord Abbett Mid Cap Stock A (LAVLX - MF report) invests heavily in undervalued companies having medium size market capitalizations. It invests in companies located throughout the globe. The fund may also invest in ADRs. It seeks capital growth. The mid cap value mutual fund returned 9.9% in the last one year.
The fund has an expense ratio of 1.08% as compared to category average of 1.23%.
Managed Account Mid Cap Value Opportunities (MMCVX - MF report) seeks long-term growth of capital. The fund invests a lion’s share of its assets in mid cap companies. The market capitalizations of these companies are within that of companies listed in the S&P MidCap 400 Value Index. The fund may invest a maximum of 30% of its assets in foreign firms. It may also invest in other securities that are not denominated in the U.S. dollar. The mid cap value mutual fund returned 5% in the last one year.
As of January 2015, this fund held 130 issues with 1.82% of its assets invested in Hospira Inc (HSP).
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.
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