3 Small-Cap Growth Mutual Funds to Buy for Dependable Returns

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.Though 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 the other fund classes.Risky 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 top-ranked small-cap growth mutual funds, namely Goldman Sachs Small Cap Growth Insights GSAOX, T. Rowe Price Integrated US Small-Cap Growth Equity PRDSX and Federated Hermes MDT Small Cap Growth QASGX. 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.Goldman Sachs Small Cap Growth Insights invests the majority of its net assets in a broadly diversified portfolio of equity investments in small-cap U.S. issuers. GSOAX also invests in fixed-income securities that are considered to be cash equivalents.Goldman Sachs Small Cap Growth Insights has a three-year annualized return of 3.6%. As of October 2024, GSAOX held 393 issues, with 1.2% of its assets invested in Fabrinet.T. Rowe Price Integrated US Small-Cap Growth Equity invests the majority of its assets in common stocks of small-cap growth companies in the United States. It defines small-cap growth companies as those whose market capitalization, at the time of purchase, falls within the range of companies in the MSCI US Small Cap Growth Index.        T. Rowe Price Integrated US Small-Cap Growth Equity has three-year annualized returns of 3.4%. PRDSX has an expense ratio of 0.79%.Federated Hermes MDT Small Cap Growth invests most of its assets in common stocks of small-cap U.S. companies. QASGX advisors consider small-cap companies as those with market capitalization within the range of companies listed on the Russell 2000 Index at the time of purchase.Federated Hermes MDT Small Cap Growth has a five-year annualized return of 13.3%. Damien Zhang has been one of the fund managers of QASGX since 2018.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.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 >>Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>View All Zacks #1 Ranked Mutual FundsWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (PRDSX): Fund Analysis Report Get Your Free (QASGX): Fund Analysis Report Get Your Free (GSAOX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks