Three Small-Cap Blend Mutual Funds to Boost Your Returns

Written by Emily J. Thompson, Senior Investment Analyst

Source: NASDAQ.COM

Updated: Dec 12 2025

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Source: NASDAQ.COM

Investment Strategy: Risk-loving investors may find small-cap blend mutual funds appealing for capital appreciation and dividend payouts, focusing on companies with market caps under $2 billion that are expected to grow over time.
Fund Recommendations: Three top-ranked small-cap blend mutual funds highlighted are Vanguard Strategic Small-Cap Equity Inv (VSTCX), Fidelity Small Cap Stock (FSLCX), and Lord Abbett Alpha Strategy (ALFAX), all rated as Strong Buy by Zacks.
Performance Overview: VSTCX has a three-year annualized return of 15%, FSLCX at 12.7%, and ALFAX at 10.4%, with each fund employing different investment strategies to achieve long-term capital growth.
Additional Resources: Investors can access a complete list of small-cap blend funds and receive updates through Zacks’ free Fund Newsletter, which includes top-performing mutual fund analyses.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.