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Focus on 3 Small-Cap Growth Mutual Funds for Solid Returns
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Small-cap growth funds are natural choices for investors with a high-risk appetite when capital appreciation over the long term takes precedence over dividend payouts. These funds focus on realizing an appreciable amount of capital growth by investing in stocks that are 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. Small-cap funds generally invest in companies having 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 against any global downturn.
BlackRock Small Cap Growth Fund (CSGEX - Free Report) invests a major portion of its assets in equity securities of small-cap domestic companies. According to CSGEX advisors, companies with market cap similar to those included on the Russell 2000 index are considered small cap. BlackRock Small Cap Growth Fund has one-year annualized returns of 6.1%.
CSGEX has an expense ratio of 0.75% compared with the category average of 1.29%.
MassMutual Select Small Cap Growth Equity Fund (MSGSX - Free Report) invests a large chunk of its assets in equity securities of companies, whose market cap is similar to those included on the S&P SmallCap 600 index or the Russell 2000 index. The fund may also invest around one-fifth of its assets in foreign companies, including those engaged in emerging markets. MassMutual Select Small Cap Growth Equity R5 has one-year annualized returns of 10.1%.
Kenneth L. Abrams is one of the fund managers of MSGSX since 2001.
JPMorgan Small Cap Growth Fund A (PGSGX - Free Report) invests a huge part of its assets in securities issued by small-cap companies. These are companies with market capitalization equivalent to those listed on the Russell 2000 Growth index stocks and below $4 billion at the time of purchase. The fund seeks capital appreciation for the long run. JPMorgan Small Cap Growth Fund A has one-year annualized returns of 10.8%.
As of September 2018, PGSGX held 117 issues, with 2.11% of its assets invested in Teladoc Health Inc.
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Focus on 3 Small-Cap Growth Mutual Funds for Solid Returns
Small-cap growth funds are natural choices for investors with a high-risk appetite when capital appreciation over the long term takes precedence over dividend payouts. These funds focus on realizing an appreciable amount of capital growth by investing in stocks that are 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. Small-cap funds generally invest in companies having 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 against any global downturn.
Below we share with you three top-ranked small-cap growth mutual funds. 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 growth funds.
BlackRock Small Cap Growth Fund (CSGEX - Free Report) invests a major portion of its assets in equity securities of small-cap domestic companies. According to CSGEX advisors, companies with market cap similar to those included on the Russell 2000 index are considered small cap. BlackRock Small Cap Growth Fund has one-year annualized returns of 6.1%.
CSGEX has an expense ratio of 0.75% compared with the category average of 1.29%.
MassMutual Select Small Cap Growth Equity Fund (MSGSX - Free Report) invests a large chunk of its assets in equity securities of companies, whose market cap is similar to those included on the S&P SmallCap 600 index or the Russell 2000 index. The fund may also invest around one-fifth of its assets in foreign companies, including those engaged in emerging markets. MassMutual Select Small Cap Growth Equity R5 has one-year annualized returns of 10.1%.
Kenneth L. Abrams is one of the fund managers of MSGSX since 2001.
JPMorgan Small Cap Growth Fund A (PGSGX - Free Report) invests a huge part of its assets in securities issued by small-cap companies. These are companies with market capitalization equivalent to those listed on the Russell 2000 Growth index stocks and below $4 billion at the time of purchase. The fund seeks capital appreciation for the long run. JPMorgan Small Cap Growth Fund A has one-year annualized returns of 10.8%.
As of September 2018, PGSGX held 117 issues, with 2.11% of its assets invested in Teladoc Health Inc.
To view the Zacks Rank and past performance of all small-cap growth mutual funds, investors can click here to see the complete list of small-cap growth funds.
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