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3 Small-Cap Growth Mutual Funds for Outstanding 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 projected to rise in value over the long term.
Small-cap funds are also good choices for investors seeking diversification across different sectors and companies. These 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 lower international exposure, small-cap funds offer higher protection than their large- and mid-cap counterparts against any global downturn.
Value Line Small Cap Opportunities Fund seeks long-term growth of capital. VLEOX advisors invest in equity securities of small-cap companies.
Value Line Small Cap Opportunities Fund has three-year annualized returns of 8.4%. As of March 2023, VLEOX held 83 issues and 4.3% of its assets were invested in RLI Corp.
Vanguard Explorer Inv Fund seeks long-term growth of capital. VEXPX invests in the stocks of small companies, which are considered by the fund's advisers to have superior growth potential.
Vanguard Explorer Inv Fund has three-year annualized returns of 7%. VEXPX has an expense ratio of 0.46% compared with the category average of 1.21%.
TRP Integrated US Small-Cap Growth Equity Fund seeks long-term capital appreciation. PRDSX invests most of its assets in common stocks at small growth companies.
TRP Integrated US Small-Cap Growth Equity Fund has three-year annualized returns of 5.6%. Sudhir Nanda has been one of the fund managers of PRDSX since 2006.
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3 Small-Cap Growth Mutual Funds for Outstanding 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 projected to rise in value over the long term.
Small-cap funds are also good choices for investors seeking diversification across different sectors and companies. These 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 lower 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 growthmutual funds, viz., Value Line Small Cap Opportunities Fund (VLEOX - Free Report) , Vanguard Explorer Inv Fund (VEXPX - Free Report) , and TRP Integrated US Small-Cap Growth Equity Fund (PRDSX - 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.
Value Line Small Cap Opportunities Fund seeks long-term growth of capital. VLEOX advisors invest in equity securities of small-cap companies.
Value Line Small Cap Opportunities Fund has three-year annualized returns of 8.4%. As of March 2023, VLEOX held 83 issues and 4.3% of its assets were invested in RLI Corp.
Vanguard Explorer Inv Fund seeks long-term growth of capital. VEXPX invests in the stocks of small companies, which are considered by the fund's advisers to have superior growth potential.
Vanguard Explorer Inv Fund has three-year annualized returns of 7%. VEXPX has an expense ratio of 0.46% compared with the category average of 1.21%.
TRP Integrated US Small-Cap Growth Equity Fund seeks long-term capital appreciation. PRDSX invests most of its assets in common stocks at small growth companies.
TRP Integrated US Small-Cap Growth Equity Fund has three-year annualized returns of 5.6%. Sudhir Nanda has been one of the fund managers of PRDSX since 2006.
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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