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3 Top-Ranked Small-Cap Blend Mutual Funds That Deserve Your Attention

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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, Nuveen Quant Small Cap Equity (TCSEX - Free Report) , Fidelity Series Small Cap Opportunities Fund (FSOPX - Free Report) and Vanguard Explorer Value Fund (VEVFX - 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.

Nuveen Quant Small Cap Equity fund invests most of its net assets in small-cap domestic equity securities with market capitalization within the range of companies included on the Russell 2000 Index at the time of purchase. TCSEX advisors generally choose to invest across a wide range of sectors with attractive growth rates and valuations.

Nuveen Quant Small Cap Equity fund has three-year annualized returns of 9.8%.As of the end of July 2024, TCSEX had 386 issues and invested 0.8% of its net assets in Abercrombie & Fitch.

Fidelity Series Small Cap Opportunities Fund invests most of its net assets in common stocks of domestic and foreign small-cap companies with growth or value or both characteristics. FSOPX advisors consider small-cap companies as those with market capitalization similar to the companies listed on the Russell 2000 Index or the S&P SmallCap 600 Index.

Fidelity Series Small Cap Opportunities Fund has three-year annualized returns of 9%. FSOPX has an expense ratio of 0.0%

Vanguard Explorer Value Fund invests most of its net assets in small and mid-cap U.S. companies, which, according to the advisor, are undervalued. VEVFX advisors consider a stock as undervalued if it is out of favor among investors, trading at a price below average in relation to measures estimated, such as earnings and book value, and has an above-average dividend yield.

Vanguard Explorer Value Fund has three-year annualized returns of 6.9%. John W. Rogers has been one of the fund managers of VEVFX since the end of January 2022.

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.

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