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3 Top-Ranked Small-Cap Growth Mutual Funds for Stellar 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 expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.
Risky 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.
Oberweis Small-Cap Opportunities Fund invests most of its net assets in common stocks of small-cap companies that its advisors believe have above-average long-term growth potential in market value. OBSOX advisors consider small-cap companies as those that have market cap of less than $5 billion or market cap equivalent to the companies listed on the Russell 2000 Index.
Oberweis Small-Cap Opportunities Fund has three-year annualized returns of 24.5%. As of the end of March 2023, OBSOX had 79 issues and 4.53% of its assets were invested in Aehr Test Systems.
AMG Frontier Small Cap Growth Fund invests most of its assets along with borrowings, if any, in common stocks of small-cap companies during the time of purchase. MSSCX advisors may also invest in stocks that are traded in the over-the-counter market.
AMG Frontier Small Cap Growth Fund has three-year annualized returns of 17.0%. MSSCX has an expense ratio of 0.96% compared with the category average of 1.21%.
Knights of Columbus Small Cap Fund invests most of its assets along with borrowings, if any, in equity securities of small-cap U.S. companies. KCSIX advisors consider small-cap companies as those with market capitalization within the range of companies listed on the Russell 2000 Index at the time of purchase.
Knights of Columbus Small Cap Fund has three-year annualized returns of 13.3%. David A. Hanna has been one of the fund managers of KCSIX since February 2015.
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3 Top-Ranked Small-Cap Growth Mutual Funds for Stellar Returns
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 expected to be more volatile than large and mid-cap companies. Also, growth funds may experience more fluctuations than the other fund classes.
Risky 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, Oberweis Small-Cap Opportunities Fund (OBSOX - Free Report) , AMG Frontier Small Cap Growth Fund (MSSCX - Free Report) and Knights of Columbus Small Cap Fund (KCSIX - 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.
Oberweis Small-Cap Opportunities Fund invests most of its net assets in common stocks of small-cap companies that its advisors believe have above-average long-term growth potential in market value. OBSOX advisors consider small-cap companies as those that have market cap of less than $5 billion or market cap equivalent to the companies listed on the Russell 2000 Index.
Oberweis Small-Cap Opportunities Fund has three-year annualized returns of 24.5%. As of the end of March 2023, OBSOX had 79 issues and 4.53% of its assets were invested in Aehr Test Systems.
AMG Frontier Small Cap Growth Fund invests most of its assets along with borrowings, if any, in common stocks of small-cap companies during the time of purchase. MSSCX advisors may also invest in stocks that are traded in the over-the-counter market.
AMG Frontier Small Cap Growth Fund has three-year annualized returns of 17.0%. MSSCX has an expense ratio of 0.96% compared with the category average of 1.21%.
Knights of Columbus Small Cap Fund invests most of its assets along with borrowings, if any, in equity securities of small-cap U.S. companies. KCSIX advisors consider small-cap companies as those with market capitalization within the range of companies listed on the Russell 2000 Index at the time of purchase.
Knights of Columbus Small Cap Fund has three-year annualized returns of 13.3%. David A. Hanna has been one of the fund managers of KCSIX since February 2015.
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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