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3 Top-Ranked Small-Cap Growth Mutual Funds to Buy Now

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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.

Below, we share with you three top-ranked small-cap growth mutual funds, viz., Northern Small Cap Core Fund (NSGRX - Free Report) ,T. Rowe Price Integrated US Sm Gr Eq (PRDSX - Free Report) and Emerald Growth (HSPGX - 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 most of its assets in the equity securities of small-capitalization companies. 

Northern Small Cap Core Fund has three-year annualized returns of 2.7%. NSGRX has an expense ratio of 0.59%.

T. Rowe Price Integrated US Sm Gr Eq fund seeks long-term capital appreciation by investing primarily in common stocks at small-growth companies. PRDSX invests its net assets in small-cap growth companies, defined as companies whose market capitalization is within the range of smaller companies on the Standard & Poor's 500 Stock Index.

T. Rowe Price Integrated US Sm Gr Eq has three-year annualized returns of 2%.  As of the end of September 2024, PRDSX held 1.1% of its net assets in Curtiss-Wright Corp.

Emerald Growth fund seeks long-term growth through capital appreciation. HSPGX invests its net assets, plus borrowings for investment purposes, if any, in common stocks, preferred stocks, and securities convertible into common and preferred stocks. 

Emerald Growth has three-year annualized returns of 2%. Kenneth G. Mertz has been one of the fund managers of HSPGX since October 1992.

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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