Grab These 3 Small-Cap Growth Mutual Funds for Steady 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.Moreover, small-cap funds are good choices for investors seeking diversification across different sectors and companies. These generally invest in companies with 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, namely Putnam Small Cap Growth PNSAX, North Square Spectrum Alpha Fund ORIGX and Congress Small Cap Growth Retail CSMVX. 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.Putnam Small Cap Growth invests the majority of its net assets in common stocks of small U.S. companies, focusing on growth stocks. Growth stocks are defined by the fund’s advisors as stocks whose earnings are expected to grow faster than those of similar firms.Putnam Small Cap Growth has a three-year annualized return of 10.2%. As of December 2024, PNSAX held 97 issues, with 2.5% of its assets invested in Vertex.North Square Spectrum Alpha Fund invests in affiliated mutual funds managed by the advisor. Usually, through the underlying funds, the fund is expected to indirectly invest in the equity securities of U.S. and foreign micro-cap, small, and mid-sized companies, among others.        North Square Spectrum Alpha Fund has three-year annualized returns of 6.7%. ORIGX has an expense ratio of 0.94%.Congress Small Cap Growth Retail seeks long-term capital growth by investing most of its assets in common stocks of small-cap companies across all sectors of the economy. CSMVX advisors define small-cap companies as companies with market-cap equivalent to the companies listed in the Russell 2000 Growth Index at the time of purchase.Congress Small Cap Growth Retail has a three-year annualized return of 5.9%. Gregg A. O’Keefe has been one of the fund managers of CSMVX since September 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.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 (PNSAX): Fund Analysis Report Get Your Free (CSMVX): Fund Analysis Report Get Your Free (ORIGX): 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