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3 Small-Cap Growth Mutual Funds That Deserve Your Attention
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Risky investors who prefer capital appreciation over dividend payouts may consider investing in small-cap growth mutual funds. Growth funds focus on realizing an appreciable amount of capital growth by investing in stocks 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.
Small-cap funds generally invest in companies having a market cap less than $2 billion. The companies, smaller in size, offer growth potential and their market capitalization may increase subsequently. Less international exposure makes small-cap funds less vulnerable to a stronger U.S. dollar. Though small-cap stocks are believed to provide greater returns, they are also expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.
Oberweis Micro Cap Portfolio invests most of its net assets in common stocks of very small companies with market capitalization of less than or equal to $600 million or within the range of companies listed in the Russell Micro-Cap Growth Index, whichever is greater. OBMCX advisors choose to invest in securities of companies that its fund's adviser believes have the potential for long-term growth in market value.
Oberweis Micro Cap Portfolio has three-year annualized returns of 24.4%. As of the end of June 2022, OBMCX had 74 issues and 5.0% of its assets were invested in Lantheus Holdings Inc.
Lord Abbett Securities Trust Micro-Cap Growth Fund Class I invests most of its assets, along with borrowings, if any, in equity securities of micro-cap companies. LMIYX advisors choose to invest in companies that appear to have the potential for more rapid growth than the overall economy using fundamental analysis techniques.
Lord Abbett Securities Trust Micro-Cap Growth Fund Class I has three-year annualized returns of 17.0%. LMIYX has an expense ratio of 1.14% compared with the category average of 1.21%.
Buffalo Small Cap Fund invests most of its net assets in equity securities, consisting of common stocks, preferred stocks, convertible preferred stocks, warrants and rights of small capitalization companies. BUFSX advisors define small-cap companies with market capitalization within the range of companies listed on the Russell 2000 Growth Index at the time of purchase.
Buffalo Small Cap Fund has three-year annualized returns of 13.2%. Jamie Cuellar has been one of the fund managers of BUFSX since January 2015.
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3 Small-Cap Growth Mutual Funds That Deserve Your Attention
Risky investors who prefer capital appreciation over dividend payouts may consider investing in small-cap growth mutual funds. Growth funds focus on realizing an appreciable amount of capital growth by investing in stocks 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.
Small-cap funds generally invest in companies having a market cap less than $2 billion. The companies, smaller in size, offer growth potential and their market capitalization may increase subsequently. Less international exposure makes small-cap funds less vulnerable to a stronger U.S. dollar. Though small-cap stocks are believed to provide greater returns, they are also expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.
Below, we share with you three small-cap growth mutual funds, namely, Oberweis Micro Cap Portfolio (OBMCX - Free Report) , Lord Abbett Securities Trust Micro-Cap Growth Fund Class I (LMIYX - Free Report) and Buffalo Small Cap Fund (BUFSX - Free Report) . 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.
Oberweis Micro Cap Portfolio invests most of its net assets in common stocks of very small companies with market capitalization of less than or equal to $600 million or within the range of companies listed in the Russell Micro-Cap Growth Index, whichever is greater. OBMCX advisors choose to invest in securities of companies that its fund's adviser believes have the potential for long-term growth in market value.
Oberweis Micro Cap Portfolio has three-year annualized returns of 24.4%. As of the end of June 2022, OBMCX had 74 issues and 5.0% of its assets were invested in Lantheus Holdings Inc.
Lord Abbett Securities Trust Micro-Cap Growth Fund Class I invests most of its assets, along with borrowings, if any, in equity securities of micro-cap companies. LMIYX advisors choose to invest in companies that appear to have the potential for more rapid growth than the overall economy using fundamental analysis techniques.
Lord Abbett Securities Trust Micro-Cap Growth Fund Class I has three-year annualized returns of 17.0%. LMIYX has an expense ratio of 1.14% compared with the category average of 1.21%.
Buffalo Small Cap Fund invests most of its net assets in equity securities, consisting of common stocks, preferred stocks, convertible preferred stocks, warrants and rights of small capitalization companies. BUFSX advisors define small-cap companies with market capitalization within the range of companies listed on the Russell 2000 Growth Index at the time of purchase.
Buffalo Small Cap Fund has three-year annualized returns of 13.2%. Jamie Cuellar has been one of the fund managers of BUFSX since January 2015.
To view the Zacks Rank and the past performance of all small-cap growth mutual funds, investors can click here to see the complete list of small-cap growth mutual funds.
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