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3 Top-Ranked Small-Cap Growth Mutual Funds to Buy Now
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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.
Though 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.
Risk-taking 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.
MassMutual Small Cap Growth Equity Fund invests most of its assets along with borrowings, if any, in common stocks of U.S. companies with market capitalization in the range of companies listed on the Russell 2000 Index or the S&P SmallCap 600 Index at the time of purchase. MSGNX advisors also invest a small portion of its assets in foreign issues, including emerging market economies.
MassMutual Small Cap Growth Equity Fund has five-year annualized returns of 9.1%. As of the end of September 2023, MSGNX had 243 issues and 1.4% of its assets were invested in E.l.F. Beauty.
Empower Small Cap Growth Fund aims to invest most of its assets, along with borrowings, if any, in equity securities of small-cap companies. 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 Fund has returned 8.9% in the past five years. MXMTX has an expense ratio of 1.19%.
Franklin Small Cap Growth fund invests most of its assets, along with borrowings, if any, in common small-cap companies with market-cap not exceeding 1.5 billion or the highest market cap of the company listed on the Russell 2000 Index, whichever is greater, at the time of purchase. FSGRX advisors also invest in acquiring a significant position in equity securities of larger companies in sectors like information technology, healthcare, consumer discretionary and industrials.
Franklin Small Cap Growth fund has five-year annualized returns of 8.1%. Bradley T. Carris has been the lead fund manager of FSGRX since the end of March 2004.
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3 Top-Ranked Small-Cap Growth Mutual Funds to Buy Now
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.
Though 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.
Risk-taking 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, namely MassMutual Small Cap Growth Equity Fund (MSGNX - Free Report) , Empower Small Cap Growth Fund (MXMTX - Free Report) and Franklin Small Cap Growth (FSGRX - 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.
MassMutual Small Cap Growth Equity Fund invests most of its assets along with borrowings, if any, in common stocks of U.S. companies with market capitalization in the range of companies listed on the Russell 2000 Index or the S&P SmallCap 600 Index at the time of purchase. MSGNX advisors also invest a small portion of its assets in foreign issues, including emerging market economies.
MassMutual Small Cap Growth Equity Fund has five-year annualized returns of 9.1%. As of the end of September 2023, MSGNX had 243 issues and 1.4% of its assets were invested in E.l.F. Beauty.
Empower Small Cap Growth Fund aims to invest most of its assets, along with borrowings, if any, in equity securities of small-cap companies. 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 Fund has returned 8.9% in the past five years. MXMTX has an expense ratio of 1.19%.
Franklin Small Cap Growth fund invests most of its assets, along with borrowings, if any, in common small-cap companies with market-cap not exceeding 1.5 billion or the highest market cap of the company listed on the Russell 2000 Index, whichever is greater, at the time of purchase. FSGRX advisors also invest in acquiring a significant position in equity securities of larger companies in sectors like information technology, healthcare, consumer discretionary and industrials.
Franklin Small Cap Growth fund has five-year annualized returns of 8.1%. Bradley T. Carris has been the lead fund manager of FSGRX since the end of March 2004.
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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