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3 Small-Cap Blend Mutual Funds for Dependable Returns

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Risk-loving investors, who give precedence to capital appreciation along with dividend payouts, may consider small-cap blend mutual funds to derive healthy returns. These funds focus on realizing an appreciable amount of capital growth by investing in stocks that are projected to rise 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 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 less international exposure, small-cap funds provide higher protection than their large and mid-cap counterparts in any global downturn.

Below, we share with you three top-ranked small-cap blend mutual funds, namely T. Rowe Price Integrated US Small-Mid Cap Core Equity (TQSMX - Free Report) , DFA U.S. Micro Cap (DFSCX - Free Report) and Fuller & Thaler Behavioral Small-Cap Equity (FTHNX - 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.

T. Rowe Price Integrated US Small-Mid Cap Core Equity invests most of its net assets in equity securities of small and mid-cap U.S. companies. For its investment purposes, TQSMX defines small and mid-cap securities as ones with market cap within the market capitalization range of the Russell 2500 Index during the time of purchase.

T. Rowe Price Integrated US Small-Mid Cap Core Equity has returned 6.7% over the past three years. As of December 2023, TQSMX held 289 issues, with 1.9% of its assets invested in the Total Money Market.

DFA U.S. Micro Cap invests most of its net assets in a broad and diverse group of domestic micro-cap companies using a market-capitalization-weighted approach. DFSCX advisors also purchase or sell futures contracts and options of U.S. equity securities and indices.

DFA U.S. Micro Cap has three-year annualized returns of 3.1%. DFSCX has an expense ratio of 0.41% compared with the category average of 1.01%.

Fuller & Thaler Behavioral Small-Cap Equity seeks long-term capital appreciation. For this purpose, FTHNX invests most of its net assets in common stocks of small-cap companies based in the United States.

Fuller & Thaler Behavioral Small-Cap Equity has returned 8% over the past three years. Frederick W. Stanske has been one of the fund managers of FTHNX since October 2015.

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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T.Rowe Price Integrat US SMID Core (TQSMX) - free report >>

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