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3 Small-Cap Growth Mutual Funds for Fantastic Returns
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Risky investors who prefer capital appreciation over dividend payout may consider investing in 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.
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 also expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.
Oberweis Small-Cap Opportunities Fund invests most of its net assets in common stocks of small companies with a market capitalization of less than $5 billion or within the range of companies listed on the Russell 2000 Index at the time of purchase. OBSOX advisors choose to invest in securities of companies that its fund's adviser believes have the potential for long-term growth in market value.
Oberweis Small-Cap Opportunities Fund has three-year annualized returns of 22.7%. As of the end of Jun 2022, OBSOX had 74 issues and 3.89% of its assets were invested in Lantheus Holdings Inc.
Buffalo Small Cap Fund Inc. invests most of its assets in equity securities of small-cap companies like common stocks, preferred stocks, convertible preferred stocks, warrants and rights. The BUFSX advisor defines small-cap companies as those that have market capitalization within the range of companies listed on the Russell 2000 Growth Index at the time of purchase.
Buffalo Small Cap Fund Inc. has three-year annualized returns of 10.3%. BUFSX has an expense ratio of 1.01% compared with the category average of 1.21%.
Paradigm Micro-Cap Fund invests most of its net assets in common stocks of U.S. micro-cap companies with market capitalization similar to the companies listed on the Russell Microcap Index according to the most recent reconstitution date. PVIVX advisors make investment decisions based on the value evaluated by the Advisor or if new investment opportunities with higher expected returns come by.
Paradigm Micro-Cap Fund has three-year annualized returns of 18.5%. Candace King Weir has been one of the fund managers of PVIVX since December 2011.
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3 Small-Cap Growth Mutual Funds for Fantastic Returns
Risky investors who prefer capital appreciation over dividend payout may consider investing in 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.
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 also expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.
Below, we share with you three small-cap growth mutual funds, namely, Oberweis Small-Cap Opportunities Fund (OBSOX - Free Report) , Buffalo Small Cap Fund Inc. (BUFSX - Free Report) and Paradigm Micro-Cap Fund (PVIVX - 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.
Oberweis Small-Cap Opportunities Fund invests most of its net assets in common stocks of small companies with a market capitalization of less than $5 billion or within the range of companies listed on the Russell 2000 Index at the time of purchase. OBSOX advisors choose to invest in securities of companies that its fund's adviser believes have the potential for long-term growth in market value.
Oberweis Small-Cap Opportunities Fund has three-year annualized returns of 22.7%. As of the end of Jun 2022, OBSOX had 74 issues and 3.89% of its assets were invested in Lantheus Holdings Inc.
Buffalo Small Cap Fund Inc. invests most of its assets in equity securities of small-cap companies like common stocks, preferred stocks, convertible preferred stocks, warrants and rights. The BUFSX advisor defines small-cap companies as those that have market capitalization within the range of companies listed on the Russell 2000 Growth Index at the time of purchase.
Buffalo Small Cap Fund Inc. has three-year annualized returns of 10.3%. BUFSX has an expense ratio of 1.01% compared with the category average of 1.21%.
Paradigm Micro-Cap Fund invests most of its net assets in common stocks of U.S. micro-cap companies with market capitalization similar to the companies listed on the Russell Microcap Index according to the most recent reconstitution date. PVIVX advisors make investment decisions based on the value evaluated by the Advisor or if new investment opportunities with higher expected returns come by.
Paradigm Micro-Cap Fund has three-year annualized returns of 18.5%. Candace King Weir has been one of the fund managers of PVIVX since December 2011.
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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