Best And Worst Funds: Mid-Cap Growth Style
By David Trainer:The mid-cap growth style ranks seventh out of the twelve fund styles as detailed in my style roadmap. It gets my Dangerous rating, which is based on aggregation of fund ratings of 396 mid-cap growth funds as of February 9, 2012. Articles on all style and sector funds are here.Figure 1 shows the alarming truth that no mid-cap growth funds are worthy of investment. All 396 earn a Neutral-or-worse rating. Digging into the quality of the funds' holdings shows that 1163 out of the 1436 stocks (over 83% of the market cap) held by mid-cap growth funds get my Neutral-or-worse rating. The takeaway is: fund managers allocate too much capital to low-quality stocks.Investors seeking exposure to mid-cap growth stocks should buy a basket of Attractive-or-better rated stocks and avoid paying undeserved fund fees.As detailed in "Cheap Funds Dupe Investors", the fund industry offers many cheap funds butComplete Story »
- Original article
- Login or register to post comments

