Top-Ranked Small-Cap Blend Mutual Funds to Consider for Strong Returns
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 offer higher protection than their large and mid-cap counterparts in any global downturn.
Below, we share with you three top-ranked, small-cap growth mutual funds, namely Fidelity Series Small Cap Opportunities Fund FSOPX, Federated Hermes Mdt Small Cap Core Fund QASCX and Fidelity Advisor Series I, Fidelity Advisor Small Cap Fund FSCDX. 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 small-cap blend funds.
Fidelity Series Small Cap Opportunities Fund invests most of its net assetsin common stocks of domestic and foreign small-cap companies with growth or value or both. FSOPX advisors generally invest in small market-cap companies.
Fidelity Series Small Cap Opportunities Fund has three-year annualized returns of 19.9%. As of the end of April 2026, FSOPX had 224 issues and invested 2.5% of its net assets in IES Holdings.
Federated Hermes Mdt Small Cap Core Fund invests most of its assets along with borrowings, if any, in small-cap domestic equity securities listed on the Russell 2000 Index. QASCX advisors may also invest in non-limited issues.
Federated Hermes Mdt Small Cap Core Fund has three-year annualized returns of 19.5%. QASCX has an expense ratio of 1.14%.
Fidelity Advisor Series I, Fidelity Advisor Small Cap Fund invests most of its net assets in common stocks of domestic and foreign small market capitalizations companies. FSCDX advisors generally invest in either growth stocks or value stocks or sometimes both.
Fidelity Advisor Series I, Fidelity Advisor Small Cap Fund has three-year annualized returns of 16.3%. Jennifer Fo Cardillo has been one of the fund managers of FSCDX since July 2018.
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.
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 >>
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>View All Zacks #1 Ranked Mutual Funds
Get Your Free (QASCX): Fund Analysis Report
Get Your Free (FSOPX): Fund Analysis Report
Get Your Free (FSCDX): Fund Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
