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3 Small-Cap Growth Mutual Funds to Buy for Impressive 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.

Although 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 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 small-cap growth mutual funds, namely Nuveen Small Cap Growth Opportunities (FRMPX - Free Report) , MassMutual Small Cap Growth Equity Fund (MSGNX - Free Report) and Macquarie Small Cap Growth Fund (WRGCX - 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.

Nuveen Small Cap Growth Opportunities fund invests most of its assets, along with borrowings, if any, in equity securities of small-capitalization growth companies. FRMPX advisors consider small-cap companies as those with market capitalizations similar to the companies listed on the Russell 2000 Index on the last business day of the month in which its most recent reconstitution was completed.

Nuveen Small Cap Growth Opportunities fund has three-year annualized returns of 17.7%. As of the end of July 2025, FRMPX had 83 issues, and 2.7% of its assets were invested in Credo Technology Group Holding.

MassMutual Small Cap Growth Equity Fund invests most of its assets, along with borrowings, if any, in common stocks of U.S. companies with market capitalization in the range of companies listed on the Russell 2000 Index or the S&P SmallCap 600 Index at the time of purchase. MSGNX advisors also invest a small portion of its assets in foreign issues, including emerging market economies.

MassMutual Small Cap Growth Equity Fund has five-year annualized returns of 13.8% in the past three years. MSGNX has an expense ratio of 1.57%.

Macquarie Small Cap Growth Fund invests most of its assets, along with borrowings, if any, in common stocks of small-capitalization companies. WRGCX advisors consider small-cap companies as those with market capitalizations similar to the companies listed on the Russell 2000 Growth Index over the last 13 months at the time of acquisition.

Macquarie Small Cap Growth Fund has five-year annualized returns of 12%. Kenneth G. McQuade has been one of the fund managers of WRGCX since October 2016.

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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