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Buy These 3 Small-Cap Growth Funds for Amazing Returns
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Risk-loving investors, who give precedence to capital appreciation over dividend payouts, may consider small-cap growth mutual funds for healthy returns. These funds focus on realizing an appreciable amount of capital growth by investing in stocks that are set to gain 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 with a market cap less than $2 billion. The companies, smaller in size, offer growth potential and their market capitalization may increase subsequently. Also, due to their limited international exposure, small-cap funds offer higher protection than their large and mid-cap counterparts during economic downturns.
Buffalo Small Cap Fund (BUFSX - Free Report) aims for long-term growth of capital. The fund invests the majority of its assets in equity securities, consisting of common stocks, preferred stocks, convertible preferred stocks, warrants and rights of small cap companies. BUFSX has returned 20.5% over the past three-years.
As of March 2020, BUFSX held 74 issues, with 3.06% of its assets invested in eHealth Inc.
Putnam Small Cap Growth Fund Class A (PNSAX - Free Report) aims for capital appreciation. The fund invests the majority of its assets in securities of domestic small-capitalization companies. The product invests about 80% of its assets in securities of those companies that are similar in size to those included on the Russell 2000 Growth Index. PNSAX has returned 19.8% over the past three years.
William J. Monroe is the fund manager of PNSAX since 2017.
Meridian Growth Fund Legacy Class (MERDX - Free Report) aims for long-term growth of capital. The fund invests in small- and mid-capitalization growth companies, which the fund manager believes has above-average growth in revenues and earnings. It invests one-fourth of its assets in securities of foreign companies, including emerging market companies. MERDX has returned 8.9% over the past three years.
MERDX has an expense ratio of 0.85% as compared to the category average of 1.22%.
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Buy These 3 Small-Cap Growth Funds for Amazing Returns
Risk-loving investors, who give precedence to capital appreciation over dividend payouts, may consider small-cap growth mutual funds for healthy returns. These funds focus on realizing an appreciable amount of capital growth by investing in stocks that are set to gain 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 with a market cap less than $2 billion. The companies, smaller in size, offer growth potential and their market capitalization may increase subsequently. Also, due to their limited international exposure, small-cap funds offer higher protection than their large and mid-cap counterparts during economic downturns.
Below we share with you three top-ranked, small-cap growth mutual funds. Each has 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.
Buffalo Small Cap Fund (BUFSX - Free Report) aims for long-term growth of capital. The fund invests the majority of its assets in equity securities, consisting of common stocks, preferred stocks, convertible preferred stocks, warrants and rights of small cap companies. BUFSX has returned 20.5% over the past three-years.
As of March 2020, BUFSX held 74 issues, with 3.06% of its assets invested in eHealth Inc.
Putnam Small Cap Growth Fund Class A (PNSAX - Free Report) aims for capital appreciation. The fund invests the majority of its assets in securities of domestic small-capitalization companies. The product invests about 80% of its assets in securities of those companies that are similar in size to those included on the Russell 2000 Growth Index. PNSAX has returned 19.8% over the past three years.
William J. Monroe is the fund manager of PNSAX since 2017.
Meridian Growth Fund Legacy Class (MERDX - Free Report) aims for long-term growth of capital. The fund invests in small- and mid-capitalization growth companies, which the fund manager believes has above-average growth in revenues and earnings. It invests one-fourth of its assets in securities of foreign companies, including emerging market companies. MERDX has returned 8.9% over the past three years.
MERDX has an expense ratio of 0.85% as compared to the category average of 1.22%.
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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