Three Small-Cap Growth Mutual Funds for Exceptional Returns

Written by Emily J. Thompson, Senior Investment Analyst

Source: NASDAQ.COM

Updated: Sep 16 2025

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Source: NASDAQ.COM

Small-Cap Growth Funds: These funds are ideal for high-risk investors seeking long-term capital appreciation, focusing on stocks with growth potential and lower market capitalizations, typically under $2 billion.
Top Small-Cap Growth Funds: Notable funds include Putnam Small Cap Growth (PNSAX), T. Rowe Price Integrated US Small-Cap Growth Equity (PRDSX), and Goldman Sachs Small Cap Growth Insights (GSAOX), all rated #1 by Zacks and expected to outperform peers.
Performance Metrics: Putnam Small Cap Growth has a three-year annualized return of 15.8%, T. Rowe Price at 12.8%, and Goldman Sachs at 15.5%, with varying expense ratios and investment strategies.
Market Outlook: The software market is projected to grow significantly due to advancements in AI, cybersecurity, and automation, presenting investment opportunities in software stocks.

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.