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3 Small-Cap Growth Funds to Secure Spectacular Returns
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Small-cap growth funds are natural choices for investors with a high-risk appetite when capital appreciation over the long term takes precedence over dividend payouts. These funds focus on realizing an appreciable amount of capital growth by investing in stocks that are projected to rise in value over the long term.
Meanwhile, small-cap funds are good choices for investors seeking diversification across different sectors and companies. These generally invest in companies having market cap lower than $2 billion. The companies, smaller in size, offer growth potential and their market capitalization may increase subsequently. Also, due to their lower international exposure, small-cap funds offer higher protection than their large- and mid-cap counterparts against any global downturn.
Franklin Small Cap Growth Fund Class A (FSGRX - Free Report) aims to provide long-term capital growth. The fund invests in information technology, industrials, consumer discretionary and healthcare sectors. FSGRX invests 80% of its net assets in equity securities of small-cap companies but may also invest in equity securities of larger companies. FSGRX has three-year annualized returns of 15.4%.
As of the end of June 2020, FSGRX held 122 issues, with 3% of its assets invested in DraftKings Inc Class A.
Buffalo Small Cap Fund (BUFSX - Free Report) aims to provide long-term growth of capital. The fund invests 80% of its net assets in equity securities, which include common stocks, preferred stocks, convertible preferred stocks, warrants and rights of small-cap companies. BUFSX has three-year annualized returns of 18.6%.
BUFSX has an expense ratio of 1.01% as compared to the category average of 1.22%.
TCM Small Cap Growth Fund (TCMSX - Free Report) aims for long-term capital appreciation. The fund invests the lion’s share of its assets in stocks of small-cap companies whose market capitalization are on par with companies on the Russell 2000 Index. TCMSX has three-year annualized returns of 9.9%.
Richard J. Johnson is one of the fund managers of TCMSX since 2004.
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3 Small-Cap Growth Funds to Secure Spectacular Returns
Small-cap growth funds are natural choices for investors with a high-risk appetite when capital appreciation over the long term takes precedence over dividend payouts. These funds focus on realizing an appreciable amount of capital growth by investing in stocks that are projected to rise in value over the long term.
Meanwhile, small-cap funds are good choices for investors seeking diversification across different sectors and companies. These generally invest in companies having market cap lower than $2 billion. The companies, smaller in size, offer growth potential and their market capitalization may increase subsequently. Also, due to their lower international exposure, small-cap funds offer higher protection than their large- and mid-cap counterparts against any global downturn.
Below we share with you three top-ranked small-cap growth mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Franklin Small Cap Growth Fund Class A (FSGRX - Free Report) aims to provide long-term capital growth. The fund invests in information technology, industrials, consumer discretionary and healthcare sectors. FSGRX invests 80% of its net assets in equity securities of small-cap companies but may also invest in equity securities of larger companies. FSGRX has three-year annualized returns of 15.4%.
As of the end of June 2020, FSGRX held 122 issues, with 3% of its assets invested in DraftKings Inc Class A.
Buffalo Small Cap Fund (BUFSX - Free Report) aims to provide long-term growth of capital. The fund invests 80% of its net assets in equity securities, which include common stocks, preferred stocks, convertible preferred stocks, warrants and rights of small-cap companies. BUFSX has three-year annualized returns of 18.6%.
BUFSX has an expense ratio of 1.01% as compared to the category average of 1.22%.
TCM Small Cap Growth Fund (TCMSX - Free Report) aims for long-term capital appreciation. The fund invests the lion’s share of its assets in stocks of small-cap companies whose market capitalization are on par with companies on the Russell 2000 Index. TCMSX has three-year annualized returns of 9.9%.
Richard J. Johnson is one of the fund managers of TCMSX since 2004.
To view the Zacks Rank and past performance of all small-cap growth mutual funds, investors can click here to see the complete list of funds.
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