3 Top-Ranked Small-Cap Blend Mutual Funds to Buy Now for High 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 Goldman Sachs Small Cap Equity Insights Fund GCSAX, Nuveen Quant Small Cap Equity Fund TCSEX and Fidelity Stock Selector Small Cap Fund FDSCX. 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.
Goldman Sachs Small Cap Equity Insights Fund invests most of its assets, along with borrowings, if any, in a broadly diversified portfolio of equity investments in small-cap U.S. issuers. GCSAX advisors also invest in foreign issues that are traded in the United States.
Goldman Sachs Small Cap Equity Insights Fund has three-year annualized returns of 19.1%. As of the end of April 2026, GCSAX had 545 issues and invested 2% of its net assets in Bloom Energy.
Nuveen Quant Small Cap Equity Fund seeks impressive long-term total returns by investing most of its net assets in small-cap equity securities. TCSEX advisors generally invest in companies that they believe have bright prospects for significant long-term capital appreciation potential.
Nuveen Quant Small Cap Equity Fund has three-year annualized returns of 18.1%. TCSEX has an expense ratio of 0.73%.
Fidelity Stock Selector Small Cap Fund seeks capital appreciation by investing most of its net assets in common stocks of small-cap companies with market cap similar to the companies listed on the Russell 2000 Index or the S&P SmallCap 600 Index at the time of purchase. FDSCX advisors divest its investment in sectors like communication services, consumer discretionary, consumer staples, energy, financials, healthcare, industrials, information technology, materials, real estate and utilities.