Markets

3 Zacks Rank #1 Small-Cap Growth Mutual Funds for Solid Gains

Risk-loving investors, who give precedence to capital appreciation over dividend payouts, may consider small-cap growth mutual funds for healthy returns. These funds focus on realizing an appreciable amount of capital growth by investing in stocks that are set to gain 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 with 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 limited international exposure, small-cap funds offer higher protection than their large and mid-cap counterparts during economic downturns.

Below we share with you three top-ranked, small-cap growth mutual funds. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the future. Investors can click here to see the complete list of small-cap growth funds .

JPMorgan Dynamic Small Cap Growth AVSCOX seeks appreciation of capital for the long run. VSCOX invests a bulk of its assets in equity securities of small-cap companies that either have market-cap similar to those included in the Russell 2000 Growth Index or have market-cap lower than $4 billion. JPMorgan Dynamic Small Cap Growth Ahas returned 33.9% in the past year.

Greg Tuorto is one of the fund managers of VSCOX since November 2016.

T. Rowe Price QM US Small-Cap Growth EquityPRDSX seeks capital appreciation over the long run. PRDSX invests a large chunk of its assets in securities of small-cap growth-oriented companies. Though PRDSX primarily focuses on acquiring securities of domestic companies, it may also invest around 10% of its assets in securities of companies located in foreign lands. T. Rowe Price QM US Small-Cap Growth Equity has one-year annualized returns of 17.4%.

As of December 2017, PRDSX held 299 issues, with 0.95% of its assets invested in Teledyne Technologies Inc.

Hartford Small Company HLS Fund IAHIASX seeks appreciation of capital. HIASX primarily invests its assets in common stocks issued by small-cap companies. The fund may also invest almost one-fifth of its assets in securities of non-U.S. issuers. Small capitalization companies are those whose market capitalization falls within the collective range of the Russell 2000 and S&P SmallCap 600 indices. Hartford Small Company HLS Fund IA has returned 23.1% in the last one-year period.

HIASX has an expense ratio of 0.76% compared with the category average of 1.28%.

To view the Zacks Rank and past performance of all small-cap growth mutual funds, investors can click here to see the complete list of small-cap growth 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 >>

Want 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 (VSCOX): Fund Analysis Report

Get Your Free (HIASX): Fund Analysis Report

Get Your Free (PRDSX): Fund Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

VSCOX HIASX PRDSX

Other Topics

Mutual Funds

Latest Markets Videos