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3 Small-Cap Growth Mutual Funds for Fantastic Returns
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Small-cap funds generally invest in companies having a market cap of 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.
Although small-cap stocks are believed to provide greater returns, they are expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.
Risky investors who prefer capital appreciation over dividend payout may consider 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.
Value Line Small Cap Opportunities Inv Fund seeks long-term growth of capital. VLEOX invests in equity securities of small-cap companies.
Value Line Small Cap Opportunities Inv Fund has three-year annualized returns of 7.6%. As of the end of June 2023, VLEOX had 79 issues and 4.4% of its assets were invested in SPS Commerce, Inc.
Empower Small Cap Growth Investor Fund invests most of its assets along with borrowings, if any, in equity securities of small-cap companies during the time of purchase. MXMTX advisors consider small-cap companies as those with market capitalization within the range of companies listed on the Russell 2000 Index at the time of purchase.
Empower Small Cap Growth Investor Fund has three-year annualized returns of 4.4%. MXMTX has an expense ratio of 1.19% compared with the category average of 1.21%.
Federated Hermes MDT Small Cap Growth Fund invests most of its assets along with borrowings, if any, in the common stock of small-cap U.S. companies. QASGX advisors consider small-cap companies as those with market capitalization within the range of companies listed on the Russell 2000 Index at the time of purchase.
Federated Hermes MDT Small Cap Growth Fund has three-year annualized returns of 4.9%. Damien Zhang has been one of the fund managers of QASGX since August 2018.
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3 Small-Cap Growth Mutual Funds for Fantastic Returns
Small-cap funds generally invest in companies having a market cap of 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.
Although small-cap stocks are believed to provide greater returns, they are expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.
Risky investors who prefer capital appreciation over dividend payout may consider 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.
Below, we share with you three small-cap growth mutual funds, viz., Value Line Small Cap Opportunities Inv Fund (VLEOX - Free Report) , Empower Small Cap Growth Investor Fund (MXMTX - Free Report) and Federated Hermes MDT Small Cap Growth Fund (QASGX - 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.
Value Line Small Cap Opportunities Inv Fund seeks long-term growth of capital. VLEOX invests in equity securities of small-cap companies.
Value Line Small Cap Opportunities Inv Fund has three-year annualized returns of 7.6%. As of the end of June 2023, VLEOX had 79 issues and 4.4% of its assets were invested in SPS Commerce, Inc.
Empower Small Cap Growth Investor Fund invests most of its assets along with borrowings, if any, in equity securities of small-cap companies during the time of purchase. MXMTX advisors consider small-cap companies as those with market capitalization within the range of companies listed on the Russell 2000 Index at the time of purchase.
Empower Small Cap Growth Investor Fund has three-year annualized returns of 4.4%. MXMTX has an expense ratio of 1.19% compared with the category average of 1.21%.
Federated Hermes MDT Small Cap Growth Fund invests most of its assets along with borrowings, if any, in the common stock of small-cap U.S. companies. QASGX advisors consider small-cap companies as those with market capitalization within the range of companies listed on the Russell 2000 Index at the time of purchase.
Federated Hermes MDT Small Cap Growth Fund has three-year annualized returns of 4.9%. Damien Zhang has been one of the fund managers of QASGX since August 2018.
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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