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Grab These 3 Small-Cap Growth Funds for Remarkable Returns
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Small-cap growth funds are natural choices 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. These 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 lower international exposure, small-cap funds offer higher protection than their large- and mid-cap counterparts against any global downturn.
TCM Small Cap Growth Fund (TCMSX - Free Report) aims for long-term capital appreciation. The fund invests the lion’s share of its assets in stocks of small-cap companies whose market capitalization are on par with companies on the Russell 2000 Index. TCMSX has three-year annualized returns of 21.1%.
As of the end of March 2021, TCMSX held 88 issues, with 3.05% of its assets invested in Western Alliance Bancorp.
Fidelity Small Cap Growth K6 Fund (FOCSX - Free Report) aims for capital appreciation. The fund invests the majority of its assets in common stocks of companies with small market capitalizations similar to companies in the Russell 2000A Index or the S&P SmallCap 600 A Index. FOCSX has three-year annualized returns of 21.7%.
FOCSX has an expense ratio of 0.61% as compared to the category average of 1.21%.
Invesco Discovery Fund Class A (OPOCX - Free Report) aims for capital growth. The fund invests the majority of its assets in common stocks of American companies that its managers believe have good potential for growth. It mostly focuses on stocks of small-capitalization companies. OPOCX has three-year annualized returns of 27.8%.
Ronald J. Zibelli is one of the fund managers of OPOCX since 2006.
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Grab These 3 Small-Cap Growth Funds for Remarkable Returns
Small-cap growth funds are natural choices 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. These 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 lower international exposure, small-cap funds offer higher protection than their large- and mid-cap counterparts against any global downturn.
Below we share with you three top-ranked small-cap growth mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the future. Investors can click here to see the complete list of funds.
TCM Small Cap Growth Fund (TCMSX - Free Report) aims for long-term capital appreciation. The fund invests the lion’s share of its assets in stocks of small-cap companies whose market capitalization are on par with companies on the Russell 2000 Index. TCMSX has three-year annualized returns of 21.1%.
As of the end of March 2021, TCMSX held 88 issues, with 3.05% of its assets invested in Western Alliance Bancorp.
Fidelity Small Cap Growth K6 Fund (FOCSX - Free Report) aims for capital appreciation. The fund invests the majority of its assets in common stocks of companies with small market capitalizations similar to companies in the Russell 2000A Index or the S&P SmallCap 600 A Index. FOCSX has three-year annualized returns of 21.7%.
FOCSX has an expense ratio of 0.61% as compared to the category average of 1.21%.
Invesco Discovery Fund Class A (OPOCX - Free Report) aims for capital growth. The fund invests the majority of its assets in common stocks of American companies that its managers believe have good potential for growth. It mostly focuses on stocks of small-capitalization companies. OPOCX has three-year annualized returns of 27.8%.
Ronald J. Zibelli is one of the fund managers of OPOCX since 2006.
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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