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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.
RBC Small Cap Core fund seeks long-term growth of capital. TEEAX invests most of its assets in common stocks of small, faster-growing companies.
RBC Small Cap Core fund has three-year annualized returns of 2.9%. As of December 2023, TEEAX held 64 issues, and 3.9% of its assets were invested in Atkore Inc.
Putnam Small Cap Growth fund seeks capital appreciation by investing primarily in common stocks of U.S. companies, with a focus on growth stocks. PNSAX advisors also invest in small companies of a size similar to those on the Russell 2500 Growth Index.
Putnam Small Cap Growth fund has three-year annualized returns of 0.3%. PNSAX has an expense ratio of 0.60%.
Northern Small Cap Core Fund seeks to provide long-term capital appreciation. NSGRX invests its net assets in the equity securities of small-capitalization companies and the securities of U.S. companies.
Northern Small Cap Core Fund has three-year annualized returns of 0.2%. Michael R. Hunstad has been one of the fund managers of NSGRX since 2020.
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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 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 growth mutual funds, viz., RBC Small Cap Core (TEEAX - Free Report) , Putnam Small Cap Growth (PNSAX - Free Report) and Northern Small Cap Core Fund (NSGRX - 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.
RBC Small Cap Core fund seeks long-term growth of capital. TEEAX invests most of its assets in common stocks of small, faster-growing companies.
RBC Small Cap Core fund has three-year annualized returns of 2.9%. As of December 2023, TEEAX held 64 issues, and 3.9% of its assets were invested in Atkore Inc.
Putnam Small Cap Growth fund seeks capital appreciation by investing primarily in common stocks of U.S. companies, with a focus on growth stocks. PNSAX advisors also invest in small companies of a size similar to those on the Russell 2500 Growth Index.
Putnam Small Cap Growth fund has three-year annualized returns of 0.3%. PNSAX has an expense ratio of 0.60%.
Northern Small Cap Core Fund seeks to provide long-term capital appreciation. NSGRX invests its net assets in the equity securities of small-capitalization companies and the securities of U.S. companies.
Northern Small Cap Core Fund has three-year annualized returns of 0.2%. Michael R. Hunstad has been one of the fund managers of NSGRX since 2020.
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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