Risk-loving investors, who give precedence to capital appreciation along with dividend payouts, may consider small-cap blend mutual funds to derive healthy returns. These funds focus on realizing an appreciable amount of capital growth by investing in stocks that are projected to rise 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 a 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 in any global downturn.
Below, we share with you three top-ranked, small-cap growth mutual funds, namely
PGIM Jennison Small Company Fund- Class A ( PGOAX Quick Quote PGOAX - Free Report) , Fidelity Stock Selector Small Cap Fund ( FDSCX Quick Quote FDSCX - Free Report) , and Fuller & Thaler Behavioral Small-Cap Equity Fund ( FTHNX Quick Quote FTHNX - 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 small-cap blend funds. PGIM Jennison Small Company Fund- Class A seeks capital growth by investing most of its net assets in equity and equity-related securities of small-cap companies with market cap similar to the companies listed on the Russell 2500 Index at the time of purchase. PGOAX chooses to invest in stocks using a blend of both value and growth styles in less-known companies which its advisor believes are relatively undervalued.
PGIM Jennison Small Company Fund- Class A has three-year annualized returns of 10.5%. As of the end of June 2022, PGOAX had 119 issues and invested 2.48% of its net assets in PDC Energy Incorporated.
Fidelity Stock Selector Small Cap Fund seeks capital appreciation by investing most of its net assets in common stocks of small-cap companies with market cap similar to the companies listed on the Russell 2000 Index or the S&P SmallCap 600 Index at the time of purchase. FDSCX advisors divest its investment in sectors like communication services, consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, real estate, and utilities.
Fidelity Stock Selector Small Cap Fund has three-year annualized returns of 8.0%. FDSCX has an expense ratio of 0.91% compared with the category average of 1.03%.
Fuller & Thaler Behavioral Small-Cap Equity Fund invests most of its assets along with borrowing, if any, in common stocks of small capitalization companies based in the United States. FTHNX advisors consider companies to be based in the United States if it is publicly traded, incorporated, headquartered, reported assets are primarily located and derive the majority of revenues from the country.
Fuller & Thaler Behavioral Small-Cap Equity Fund has three-year annualized returns of 8.9%. Raife Giovinazzo has been one of the fund managers of FTHNX since February 2013.
To view the Zacks Rank and the past performance of all small-cap blend mutual funds, investors can
click here to see the complete list of small-cap blend mutual funds. Want key mutual fund info delivered straight to your inbox?
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