We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Investors with a high-risk appetite and an interest in growth and value investing may choose small-cap blend mutual funds to boost their portfolio. While blend funds, also known as "hybrid funds," aim for value appreciation by capital gains, small-cap funds have higher growth prospects than their large and medium counterparts. Blend funds provide significant exposure to both growth and value stocks, and owe their origin to a graphical representation of a fund's equity style box.
Funds investing the majority of their assets in securities of companies with a market capitalization below $2 billion are generally considered small-cap mutual funds. Although funds investing in small-cap stocks are believed to have more exposure to market volatility than large or medium ones, they are also expected to provide diversification across sectors and companies. Moreover, small-cap companies are believed to be less affected by a global downturn, thanks to less international exposure.
TRP Integrated US SMCC Eq fund invests in equity securities issued by small and mid-cap U.S. companies. TQSMX advisors also invest in common stocks.
TRP Integrated US SMCC Eq has three-year annualized returns of 8.8%. TQSMX has an expense ratio of 0.87% compared with the category average of 0.94%.
MassMutual Small Cap Opps fund seeks to achieve long-term growth of capital and income by investing primarily in a diversified portfolio of equity securities of smaller companies. MSCDX invests in stocks, securities convertible into stocks and other securities, such as warrants and stock rights, whose value is based on stock prices.
MassMutual Small Cap Opps has three-year annualized returns of 6.7%. As of the end of September 2023, MSCDX had 96 issues and invested 2.1% of its net assets in Atkore Inc.
Davenport Small Cap Focus fund seeks maximum long-term total return, consistent with reasonable risk. DSCPX invests most of its assets in equity securities of small-capitalization companies.
Davenport Small Cap Focus has three-year annualized returns of 7.5%. Christopher G. Pearson has been one of the fund managers of DSCPX since December 2014.
Image: Bigstock
3 Small-Cap Blend Mutual Funds for Higher Returns
Investors with a high-risk appetite and an interest in growth and value investing may choose small-cap blend mutual funds to boost their portfolio. While blend funds, also known as "hybrid funds," aim for value appreciation by capital gains, small-cap funds have higher growth prospects than their large and medium counterparts. Blend funds provide significant exposure to both growth and value stocks, and owe their origin to a graphical representation of a fund's equity style box.
Funds investing the majority of their assets in securities of companies with a market capitalization below $2 billion are generally considered small-cap mutual funds. Although funds investing in small-cap stocks are believed to have more exposure to market volatility than large or medium ones, they are also expected to provide diversification across sectors and companies. Moreover, small-cap companies are believed to be less affected by a global downturn, thanks to less international exposure.
Below, we share with you three top-ranked small-cap blend mutual funds, viz., TRP Integrated US SMCC Eq (TQSMX - Free Report) , MassMutual Small Cap Opps (MSCDX - Free Report) and Davenport Small Cap Focus (DSCPX - 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.
TRP Integrated US SMCC Eq fund invests in equity securities issued by small and mid-cap U.S. companies. TQSMX advisors also invest in common stocks.
TRP Integrated US SMCC Eq has three-year annualized returns of 8.8%. TQSMX has an expense ratio of 0.87% compared with the category average of 0.94%.
MassMutual Small Cap Opps fund seeks to achieve long-term growth of capital and income by investing primarily in a diversified portfolio of equity securities of smaller companies. MSCDX invests in stocks, securities convertible into stocks and other securities, such as warrants and stock rights, whose value is based on stock prices.
MassMutual Small Cap Opps has three-year annualized returns of 6.7%. As of the end of September 2023, MSCDX had 96 issues and invested 2.1% of its net assets in Atkore Inc.
Davenport Small Cap Focus fund seeks maximum long-term total return, consistent with reasonable risk. DSCPX invests most of its assets in equity securities of small-capitalization companies.
Davenport Small Cap Focus has three-year annualized returns of 7.5%. Christopher G. Pearson has been one of the fund managers of DSCPX since December 2014.
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.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>