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 bet given that the macroeconomic conditions have generally offered a roller-coaster ride in recent years.
Below we will share with you 5 top 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.
Neuberger Berman M/C Intrinsic Value Trust (NBREX – MF report) seeks capital appreciation over the long run. NBREX invests a lion's share of its assets in companies having market capitalizations similar to those included in the Russell Midcap Value Index. NBREX uses “bottom-up” approach to invest in companies that are believed to be undervalued and have impressive growth prospect. Neuberger Berman M/C Intrinsic Value Trust fund has a three-year annualized return of 20.3%.
Michael C. Greene is the fund manager and has managed this fund since 2011.
Transamerica Partners Mid Value (DVMVX – MF report) invests a major portion of its assets in equity securities of companies having market cap size identical to those listed in the Russell Midcap Value Index. The fund may also consider companies having market capitalizations within the range of $1 billion to $20 billion for investment. Transamerica Partners Mid Value fund has a three-year annualized return of 18.3%.
