Mid-Cap Value Fund
What is it? A mutual fund that invests in the undervalued stocks of mid-sized companies. According to Morningstar, mid-cap funds invest in companies with market capitalizations between $2 billion and $11 billion. The definition for mid-cap funds has gone up from the range of $1 billion to $5 billion as the stock market has risen. For that reason, other organizations may use different definitions. Value fund managers buy stocks that have relatively low P/E ratios or are undervalued by other objective measures, such as price-to-book ratios. The underlying company must be fundamentally strong even though the stock is low. Fund managers hope that over time the stock price will rise as a better reflection of the company?s performance.Added By: Ryan
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