5 Top Small Cap Growth Mutual Funds to Add to Your Portfolio - Mutual Fund Commentary
Growth funds become a natural choice for investors 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 of firms whose value is projected to rise over the long term. Small cap funds are a good choice for investors seeking diversification across different sectors and companies. Investors with a high risk appetite should invest in these funds. Small cap funds generally invest in companies having market cap lower than $2 billion. The companies, smaller in size, offer growth potential and their market capitalization may increase subsequently.
Below we will share with you 5 top-rated small cap growth mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. 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 funds.
Harbor Small Cap Growth Investor (HISGX) seeks long term capital appreciation. The fund mostly invests in small cap companies, whose market capitalization lies within the range of the Russell 2000 Growth Index. It invests a large portion of its assets in a diversified portfolio of equity securities of around 75 to 85 small cap companies. The fund has returned 14.2% over the last one year.
The fund has an expense ratio of 1.2% as compared to category average of 1.37%.
Fidelity Advisor Small Cap Growth A (FCAGX) invests a large share of its assets in small cap companies. It invests in both domestic and foreign companies which the Fidelity Management & Research Company (FMR) believes have higher than average growth potential. It applies fundamental analysis including issuer’s financial and economic conditions to select investments. The fund has returned 10.5% over the last one year.
The fund manager is Patrick Venanzi and has managed this fund since 2011.
Consulting Group Small Cap Growth (TSGUX) seeks capital growth over the long run. The fund invests a lion’s share of its assets in small cap companies or in other securities having identical characteristics. It considers a company as small cap if it has a market capitalization of not more than $3 billion or no larger than the largest capitalized company listed in the Russell 2000 Growth Index. A maximum of 10% of its assets may get invested in foreign companies. The small cap growth mutual fund returned 9.7% in the last one year.
The fund has an expense ratio of 0.92% as compared to category average of 1.37%.
Hartford Small Company A (IHSAX) invests heavily in companies having market capitalizations identical to those included in the Russell 2000 and S&P SmallCap 600 Indices. It focuses on acquiring common stocks of companies having impressive growth potential. It may also invest a maximum of 20% of its assets in companies located outside the US boundaries. The small cap growth mutual fund returned 10.6% in the last one year.
As of February 2015, this fund held 347 issues with 1.88% of its assets invested in Diamond Resorts International Inc
PNC Multi Factor Small Cap Growth A (PLWAX) seeks capital growth over the long run. The fund invests a lion’s share of its assets in small cap companies. The market capitalizations of these companies are identical to the size of the companies listed in the Russell 2000 Growth Index or less than the past three years average of the largest capitalization company listed in the index. The fund has returned 13.9% over the last one year.
The fund carries an annual expense ratio of 1.12% as compared to category average of 1.37%.
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 funds.
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