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3 Top-Ranked Small-Cap Growth Funds for Fantastic 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 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 achieving significant 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) , Northern Small Cap Core Fund (NSGRX - 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. GSAOX 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 15.5%. As of April 2025, GSAOX held 370 issues, with 1.7% of its assets invested in Sprouts Farmers Market.

Northern Small Cap Core Fund invests the majority of its net assets in equities of small-cap companies, typically those matching the Russell 2000 Index’s market-cap range. Many of these firms reinvest earnings for growth and usually pay minimal or no dividends.        

Northern Small Cap Core Fund has three-year annualized returns of 10.9%. NSGRX has an expense ratio of 0.57%.

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 a 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 13.4%. Daniel A. Lagan has been one of the fund managers of CSMVX since February 2025.

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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