The Top 5 Best Performing Small Cap Funds
Small cap mutual funds are known for their potential to yield high returns, making them an attractive investment option for those who are willing to take some risks. Small cap funds primarily invest in companies that have market capitalization below $2 billion. Although these companies may be relatively unknown or have a shorter track record than larger firms, they often have significant growth potential.
Here are the top 5 best performing small cap funds based on their year-to-date returns:
1. T. Rowe Price Small Cap Stock Fund (OTCFX)
The T. Rowe Price Small Cap Stock Fund has delivered an impressive year-to-date return of 34.96%. The fund invests in high-quality small companies that have durable competitive advantages, strong balance sheets, and attractive valuations. The fund generally holds a diversified portfolio of 150-200 companies across a range of industries.
2. Fidelity Small Cap Discovery Fund (FSCRX)
The Fidelity Small Cap Discovery Fund has generated a year-to-date return of 34.79%. The fund invests in small-cap companies that have strong growth potential and are trading at attractive valuations. The fund's portfolio is diversified across a range of industries, with a focus on technology, healthcare, and industrials.
3. Vanguard Small-Cap Value Index Fund (VSIAX)
The Vanguard Small-Cap Value Index Fund has generated a year-to-date return of 29.95%. The fund tracks the performance of the CRSP US Small Cap Value Index, which consists of small-cap companies with lower valuations and higher dividend yields than the overall market. The fund's portfolio is heavily weighted towards financials and industrials.
4. TIAA-CREF Small-Cap Blend Index Fund (TISBX)
The TIAA-CREF Small-Cap Blend Index Fund has delivered a year-to-date return of 28.72%. The fund seeks to track the performance of the Russell 2000 Index, which measures the performance of the small-cap segment of the U.S. equity market. The fund's portfolio is well-diversified across a range of sectors.
5. JPMorgan Small Cap Equity Fund (PSOAX)
The JPMorgan Small Cap Equity Fund has generated a year-to-date return of 28.13%. The fund invests in small-cap companies that have a strong competitive position, attractive valuations, and solid financials. The fund's portfolio is diversified across a range of sectors, with a focus on healthcare, technology, and industrials.
When it comes to investing in small-cap funds, it is important to keep in mind that these funds tend to be more volatile than larger-cap funds. However, if you have a long-term investment horizon and are willing to tolerate some short-term volatility, small-cap funds can offer high growth potential.
Investors should also consider their investment goals, risk tolerance, and time horizon before investing in small-cap funds. It is important to do your research and consult with a financial advisor before making any investment decisions.
In conclusion, the top 5 best performing small cap funds mentioned above have delivered impressive year-to-date returns and may be worth considering for long-term investors with a high risk tolerance. However, as with any investment, it is important to do your due diligence and consult with a financial advisor before making any decisions.