Small-cap funds generally invest in companies with 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 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.
Invesco Discovery fund seeks capital appreciation. OPOCX invests mainly in common stocks of U.S. companies that the portfolio manager believes have favorable growth prospects.
Invesco Discovery has three-year annualized returns of 18.6%. As of August 2025, OPOCX held 101 issues, with 2.2% of its assets invested in StepStone Group Inc
Voya SmallCap Opportunities Port fund invests most of its assets in mid-cap companies whose market capitalizations fall below the Russell 2000 Index.
Voya SmallCap Opportunities Port has a three-year annualized return of 16.1%. Mitchell Brivic has been one of the fund managers of IVOPX since 2022.
North Square Spectrum Alpha Fund seeks capital appreciation. ORIGX invests at least 80% of its net assets in equity securities of small capitalization U.S. companies.
North Square Spectrum Alpha Fund has a three-year annualized return of 14.6%. ORIGX has an expense ratio of 0.97%.
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3 Top-Ranked Small-Cap Growth Mutual Funds to Buy Now
Small-cap funds generally invest in companies with 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 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 funds, viz., Invesco Discovery ((OPOCX - Free Report) ), Voya SmallCap Opportunities Port ((IVPOX - Free Report) ) and North Square Spectrum Alpha Fund ((ORIGX - Free Report) ). Each has 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.
Invesco Discovery fund seeks capital appreciation. OPOCX invests mainly in common stocks of U.S. companies that the portfolio manager believes have favorable growth prospects.
Invesco Discovery has three-year annualized returns of 18.6%. As of August 2025, OPOCX held 101 issues, with 2.2% of its assets invested in StepStone Group Inc
Voya SmallCap Opportunities Port fund invests most of its assets in mid-cap companies whose market capitalizations fall below the Russell 2000 Index.
Voya SmallCap Opportunities Port has a three-year annualized return of 16.1%. Mitchell Brivic has been one of the fund managers of IVOPX since 2022.
North Square Spectrum Alpha Fund seeks capital appreciation. ORIGX invests at least 80% of its net assets in equity securities of small capitalization U.S. companies.
North Square Spectrum Alpha Fund has a three-year annualized return of 14.6%. ORIGX has an expense ratio of 0.97%.
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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