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3 Top-Ranked Small-Cap Blend Funds for Risk-Tolerant Investors
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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.
Federated Hermes Mdt Small Cap Core Fund invests most of its assets, along with borrowings, if any, in small-cap domestic equity securities listed on the Russell 2000 Index. QASCX advisors may also invest in foreign issues.
Federated Hermes Mdt Small Cap Core Fund has three-year annualized returns of 20.4%. As of the end of January 2026, QASCX had 303 issues and invested 2.3% of its net assets in American Healthcare REIT.
Fidelity Commonwealth Trust Fidelity Small Cap Stock Fund invests most of its assets, along with borrowings, if any, in common stocks of small-cap foreign and domestic companies with market capitalization similar to the companies listed on the Russell 2000 Index or the S&P SmallCap 600 Index. FSLCX advisors use fundamental analysis factors, such as financial condition, industry position, as well as market and economic conditions, to select either growth or value stocks or stocks with both characteristics.
Fidelity Commonwealth Trust Fidelity Small Cap Stock Fund has three-year annualized returns of 17.5%. FSLCX has an expense ratio of 0.90%
Thrivent Small Cap Stock Fund invests most of its assets, along with borrowings, if any, in domestic equity securities of small-cap companies. AASMX advisors consider small companies as those with market capitalization within the range of market capitalization of companies listed on the Russell 2000 Index, S&P SmallCap 600 Index, or the small company market capitalization classifications published by Morningstar or Lipper.
Thrivent Small Cap Stock Fund has three-year annualized returns of 10.3%. Matthew J. Carlone has been one of the fund managers of AASMX since the end of February 2025.
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3 Top-Ranked Small-Cap Blend Funds for Risk-Tolerant Investors
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, namely Federated Hermes Mdt Small Cap Core Fund (QASCX - Free Report) , Fidelity Commonwealth Trust Fidelity Small Cap Stock Fund (FSLCX - Free Report) and Thrivent Small Cap Stock Fund (AASMX - 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.
Federated Hermes Mdt Small Cap Core Fund invests most of its assets, along with borrowings, if any, in small-cap domestic equity securities listed on the Russell 2000 Index. QASCX advisors may also invest in foreign issues.
Federated Hermes Mdt Small Cap Core Fund has three-year annualized returns of 20.4%. As of the end of January 2026, QASCX had 303 issues and invested 2.3% of its net assets in American Healthcare REIT.
Fidelity Commonwealth Trust Fidelity Small Cap Stock Fund invests most of its assets, along with borrowings, if any, in common stocks of small-cap foreign and domestic companies with market capitalization similar to the companies listed on the Russell 2000 Index or the S&P SmallCap 600 Index. FSLCX advisors use fundamental analysis factors, such as financial condition, industry position, as well as market and economic conditions, to select either growth or value stocks or stocks with both characteristics.
Fidelity Commonwealth Trust Fidelity Small Cap Stock Fund has three-year annualized returns of 17.5%. FSLCX has an expense ratio of 0.90%
Thrivent Small Cap Stock Fund invests most of its assets, along with borrowings, if any, in domestic equity securities of small-cap companies. AASMX advisors consider small companies as those with market capitalization within the range of market capitalization of companies listed on the Russell 2000 Index, S&P SmallCap 600 Index, or the small company market capitalization classifications published by Morningstar or Lipper.
Thrivent Small Cap Stock Fund has three-year annualized returns of 10.3%. Matthew J. Carlone has been one of the fund managers of AASMX since the end of February 2025.
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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