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4 Zacks Rank #1 Small-Cap Growth Funds for Higher Returns
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Small-cap growth funds become the natural choice 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. Small cap funds 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 less international exposure, small-cap funds offer higher protection than their large- and mid-cap counterparts against any global downturn.
Fidelity Small Cap Growth (FCPGX - Free Report) seeks growth of capital. FCPGX invests a major portion of its assets in equity securities of small-cap companies. The fund invests both in domestic and foreign companies, which are expected to have an above-average growth prospect. Fidelity Small Cap Growth has a three-year annualized return of 10.3%.
FCPGX has an expense ratio of 0.90% as compared to the category average of 1.40%.
Columbia Small Cap Growth I A (CGOAX - Free Report) invests the lion’s share of its assets in equity securities of companies having market capitalization within the universe of the S&P SmallCap 600 Index. CGOAX seeks appreciation of capital. The fund focuses on acquiring common stocks of companies that are believed to have an impressive growth potential over the long run. CGOAX may also invest in companies with short- and medium-term above-average growth potential. Columbia Small Cap Growth I A has a three-year annualized return of 5.3%.
Wayne Collette is one of the fund managers of CGOAX since 2006.
Northern Small Cap Core (NSGRX - Free Report) seeks capital growth over the long run. NSGRX invests more than 80% of its assets in equity securities of small cap companies having market capitalization similar to those listed onthe Russell 2000 Index. Several companies that found their place in the NSGRX portfolio have the potential to register solid current and future earnings growth. Northern Small Cap Core has a three-year annualized return of 7.9%.
As of June 2016, NSGRX held 1,842 issues, with 0.32% of its assets invested in Tyler Technologies Inc.
Fidelity Advisor Small Cap Growth A (FCAGX - Free Report) invests the bulk of its assets in common stocks of small cap growth companies. FCAGX invests in securities issued throughout the globe. The fund considers factors including financial strength and economic condition for investing in a company. Fidelity Advisor Small Cap Growth A has a three-year annualized return of 10%.
FCAGX has an expense ratio of 1.20% as compared to the category average of 1.40%.
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4 Zacks Rank #1 Small-Cap Growth Funds for Higher Returns
Small-cap growth funds become the natural choice 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. Small cap funds 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 less international exposure, small-cap funds offer higher protection than their large- and mid-cap counterparts against any global downturn.
Below we share with you four top-rated, small-cap growth mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and we expect the fund to outperform its peers in the future. Investors can click here to see the complete list of small-cap growth funds.
Fidelity Small Cap Growth (FCPGX - Free Report) seeks growth of capital. FCPGX invests a major portion of its assets in equity securities of small-cap companies. The fund invests both in domestic and foreign companies, which are expected to have an above-average growth prospect. Fidelity Small Cap Growth has a three-year annualized return of 10.3%.
FCPGX has an expense ratio of 0.90% as compared to the category average of 1.40%.
Columbia Small Cap Growth I A (CGOAX - Free Report) invests the lion’s share of its assets in equity securities of companies having market capitalization within the universe of the S&P SmallCap 600 Index. CGOAX seeks appreciation of capital. The fund focuses on acquiring common stocks of companies that are believed to have an impressive growth potential over the long run. CGOAX may also invest in companies with short- and medium-term above-average growth potential. Columbia Small Cap Growth I A has a three-year annualized return of 5.3%.
Wayne Collette is one of the fund managers of CGOAX since 2006.
Northern Small Cap Core (NSGRX - Free Report) seeks capital growth over the long run. NSGRX invests more than 80% of its assets in equity securities of small cap companies having market capitalization similar to those listed onthe Russell 2000 Index. Several companies that found their place in the NSGRX portfolio have the potential to register solid current and future earnings growth. Northern Small Cap Core has a three-year annualized return of 7.9%.
As of June 2016, NSGRX held 1,842 issues, with 0.32% of its assets invested in Tyler Technologies Inc.
Fidelity Advisor Small Cap Growth A (FCAGX - Free Report) invests the bulk of its assets in common stocks of small cap growth companies. FCAGX invests in securities issued throughout the globe. The fund considers factors including financial strength and economic condition for investing in a company. Fidelity Advisor Small Cap Growth A has a three-year annualized return of 10%.
FCAGX has an expense ratio of 1.20% as compared to the category average of 1.40%.
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 small-cap growth funds
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