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3 Top-Ranked Small-Cap Growth Mutual Funds for Higher 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.
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.
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 for investors seeking diversification across different sectors and companies.
Oberweis Small-Cap Opportunities Fund invests most of its net assets in common stocks of small-cap companies that its advisors believe have above-average long-term growth potential in market value. OBSOX advisors consider small-cap companies as those that have market cap of less than $5 billion or market cap equivalent to the companies listed on the Russell 2000 Index.
Oberweis Small-Cap Opportunities Fund has five-year annualized returns of 19.1%. As of the end of June 2024, OBSOX had 88 issues and 3.1% of its assets were invested in Waetherford International.
American Century Small Cap Growth fund invests most of its net assets in small-cap companies with market capitalization similar to those listed on the Russell 2000 Growth Index. ANOIX advisors use their own investment strategy to find companies that they believe will increase in value over time.
American Century Small Cap Growth fund has five-year annualized returns of 11.3%. ANOIX has an expense ratio of 1.15%.
Harbor Small Cap Growth fund invests most of its assets, along with borrowings, if any, in common and preferred stocks of small-cap companies. HISGX advisors consider small companies as those with market capitalization within the range of companies listed on the Russell 2000 Growth Index.
Harbor Small Cap Growth fund has five-year annualized returns of 10.3%. William A. Muggia has been one of the fund managers of HISGX since November 2000.
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3 Top-Ranked Small-Cap Growth Mutual Funds for Higher 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.
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.
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 for investors seeking diversification across different sectors and companies.
Below, we share with you three small-cap growth mutual funds, namely, Oberweis Small-Cap Opportunities Fund (OBSOX - Free Report) , American Century Small Cap Growth (ANOIX - Free Report) and Harbor Small Cap Growth (HISGX - 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-cap companies that its advisors believe have above-average long-term growth potential in market value. OBSOX advisors consider small-cap companies as those that have market cap of less than $5 billion or market cap equivalent to the companies listed on the Russell 2000 Index.
Oberweis Small-Cap Opportunities Fund has five-year annualized returns of 19.1%. As of the end of June 2024, OBSOX had 88 issues and 3.1% of its assets were invested in Waetherford International.
American Century Small Cap Growth fund invests most of its net assets in small-cap companies with market capitalization similar to those listed on the Russell 2000 Growth Index. ANOIX advisors use their own investment strategy to find companies that they believe will increase in value over time.
American Century Small Cap Growth fund has five-year annualized returns of 11.3%. ANOIX has an expense ratio of 1.15%.
Harbor Small Cap Growth fund invests most of its assets, along with borrowings, if any, in common and preferred stocks of small-cap companies. HISGX advisors consider small companies as those with market capitalization within the range of companies listed on the Russell 2000 Growth Index.
Harbor Small Cap Growth fund has five-year annualized returns of 10.3%. William A. Muggia has been one of the fund managers of HISGX since November 2000.
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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