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3 Top-Ranked Small-Cap Growth Funds Offering Consistent Gains

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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 expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.

Risk-taking 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 top-ranked small-cap growth mutual funds, namely Goldman Sachs Small Cap Growth Insights (GSAOX - Free Report) , Franklin Small Cap Growth (FSGRX - Free Report) and Congress Small Cap Growth Retail (CSMVX - 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.

Goldman Sachs Small Cap Growth Insights invests the majority of its net assets in a broadly diversified portfolio of equity investments in small-cap U.S. issuers. GSOAX also invests in fixed-income securities that are considered to be cash equivalents.

Goldman Sachs Small Cap Growth Insights has a three-year annualized return of 10.4%. As of January 2025, GSAOX held 386 issues, with 1.7% of its assets invested in Sprouts Farmers Market.

Franklin Small Cap Growth invests the majority of its net assets in the equity securities of small-cap companies. The equity securities in which the fund invests are predominantly common stock. FSGRX advisors may invest in equity securities of companies in the information technology, healthcare, consumer discretionary and industrial sectors.        

Franklin Small Cap Growth has three-year annualized returns of 8.4%. FSGRX has an expense ratio of 1%.

Congress Small Cap Growth Retail seeks long-term capital growth by investing most of its assets in common stocks of small-cap companies across all sectors of the economy. CSMVX advisors define small-cap companies as companies with market-cap equivalent to the companies listed in the Russell 2000 Growth Index at the time of purchase.

Congress Small Cap Growth Retail has a three-year annualized return of 8.7%. Gregg A. O’Keefe has been one of the fund managers of CSMVX since September 2017.

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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