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3 Small-Cap Growth Mutual Funds for Alluring Returns
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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.
Although small-cap stocks are believed to provide greater returns, they are expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.
Risky investors who prefer capital appreciation over dividend payout may consider 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.
Northern Small Cap Core Fund seeks to provide long-term capital appreciation. NSGRX invests its net assets in the equity securities of small-capitalization companies and the securities of U.S. companies.
Northern Small Cap Core Fund has three-year annualized returns of 7.3%. Michael R. Hunstad has been one of the fund managers of NSGRX since July 2020.
Morgan Stanley Pathway Sm-Mid Cap Eq seeks capital appreciation by investing in the equity securities of small-capitalization growth companies. TSGUX advisors also invest in common stocks of companies with market capitalizations at the lower range of the Russell 2000 Growth Index.
Morgan Stanley Pathway Sm-Mid Cap Eq has three-year annualized returns of 4.5%. TSGUX has an expense ratio of 0.60% compared with the category average of 0.94%.
Vanguard Explorer Inv seeks long-term growth of capital. VEXPX invests in the stocks of small companies, which are considered by the fund's advisers to have superior growth potential.
Vanguard Explorer Inv has three-year annualized returns of 3.2%. As of the end of July 2023, VEXPX had 767 issues and 1% of its assets were invested in ICON Public Ltd Co.
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3 Small-Cap Growth Mutual Funds for Alluring Returns
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.
Although small-cap stocks are believed to provide greater returns, they are expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.
Risky investors who prefer capital appreciation over dividend payout may consider 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.
Below, we share with you three small-cap growth mutual funds, viz., Northern Small Cap Core Fund (NSGRX - Free Report) , Morgan Stanley Pathway Sm-Mid Cap Eq (TSGUX - Free Report) and Vanguard Explorer Inv (VEXPX - 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.
Northern Small Cap Core Fund seeks to provide long-term capital appreciation. NSGRX invests its net assets in the equity securities of small-capitalization companies and the securities of U.S. companies.
Northern Small Cap Core Fund has three-year annualized returns of 7.3%. Michael R. Hunstad has been one of the fund managers of NSGRX since July 2020.
Morgan Stanley Pathway Sm-Mid Cap Eq seeks capital appreciation by investing in the equity securities of small-capitalization growth companies. TSGUX advisors also invest in common stocks of companies with market capitalizations at the lower range of the Russell 2000 Growth Index.
Morgan Stanley Pathway Sm-Mid Cap Eq has three-year annualized returns of 4.5%. TSGUX has an expense ratio of 0.60% compared with the category average of 0.94%.
Vanguard Explorer Inv seeks long-term growth of capital. VEXPX invests in the stocks of small companies, which are considered by the fund's advisers to have superior growth potential.
Vanguard Explorer Inv has three-year annualized returns of 3.2%. As of the end of July 2023, VEXPX had 767 issues and 1% of its assets were invested in ICON Public Ltd Co.
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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