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3 Small-Cap Growth Mutual Funds Worthy of Your Attention
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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.
Although 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 other fund classes.
Risk-taking 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.
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.
Northern Small Cap Core Fund has three-year annualized returns of 3.5%. NSGRX has an expense ratio of 0.59%.
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 has three-year annualized returns of 3.9%. As of the end of March 2024, PNSAX had 3.5% of its assets invested in Super Micro Computer, Inc.
Fidelity Small Cap Growth invests most of its net assets in common stocks of small-capitalization companies. FOCSX advisors consider small-cap companies as those with market capitalization similar to the ones listed on the Russell 2000 Growth Index or the S&P SmallCap 600 Index.
Fidelity Small Cap Growth has three-year annualized returns of 0.7%. Patrick Venanzi has been one of the fund managers of FOCSX since the end of May 2017.
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3 Small-Cap Growth Mutual Funds Worthy of Your Attention
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.
Although 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 other fund classes.
Risk-taking 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, viz., Northern Small Cap Core Fund (NSGRX - Free Report) , Putnam Small Cap Growth (PNSAX - Free Report) and Fidelity Small Cap Growth (FOCSX - 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.
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.
Northern Small Cap Core Fund has three-year annualized returns of 3.5%. NSGRX has an expense ratio of 0.59%.
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 has three-year annualized returns of 3.9%. As of the end of March 2024, PNSAX had 3.5% of its assets invested in Super Micro Computer, Inc.
Fidelity Small Cap Growth invests most of its net assets in common stocks of small-capitalization companies. FOCSX advisors consider small-cap companies as those with market capitalization similar to the ones listed on the Russell 2000 Growth Index or the S&P SmallCap 600 Index.
Fidelity Small Cap Growth has three-year annualized returns of 0.7%. Patrick Venanzi has been one of the fund managers of FOCSX since the end of May 2017.
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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