From Nasdaq: 2025-05-28 05:57:00

Small-cap growth funds are ideal for high-risk investors prioritizing long-term capital appreciation over dividends. These funds focus on investing in stocks expected to increase in value over time, offering diversification across sectors and companies with market caps under $2 billion. They provide higher protection in global downturns compared to large and mid-cap funds.

Top-ranked small-cap growth mutual funds include Putnam Small Cap Growth (PNSAX), North Square Spectrum Alpha Fund (ORIGX), and Congress Small Cap Growth Retail (CSMVX), all with a Zacks Mutual Fund Rank #1. Putnam invests in small U.S. companies, North Square Spectrum Alpha Fund in U.S. and foreign companies, and Congress in small-cap companies across all sectors.

Putnam Small Cap Growth has a 10.2% three-year annualized return, with 97 holdings including a 2.5% stake in Vertex. North Square Spectrum Alpha Fund has a 6.7% three-year annualized return with an expense ratio of 0.94%. Congress Small Cap Growth Retail aims for long-term capital growth by investing in small-cap companies listed in the Russell 2000 Growth Index.

Investors seeking more information on small-cap growth mutual funds can access the complete list and past performance through Zacks. Zacks offers a Fund Newsletter providing top news and analysis, along with top-performing mutual funds. Additionally, Zacks offers a limited-time opportunity for a $1 trial to access all picks and portfolio services, including Surprise Trader and Technology Innovators, with double- and triple-digit gains in 2024.



Read more at Nasdaq: Grab These 3 Small-Cap Growth Mutual Funds for Steady Returns