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3 Small-Cap Mutual Funds Primed for Growth

Don't stick your neck out for individual names — harness the explosive potential of small caps via these funds

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American Century Small Company (ASQIX)

best-mutual-funds-to-buy-ASQIXAlso featuring a quantitative approach, American Century Small Company (ASQIX) is moving in a positive direction.

Managers Brian Garbe and Tal Sansani have been on this $330 million fund since 2010, and fund performance has improved over the period. Year-to-date, ASQIX is up 38.4%, good enough to place it in the top 12% of mutual funds in its Morningstar category.

ASQIX mixes growth names in with value stocks for a blend that has worked quite well. Microcap stocks account for 33% of the fund, helping to add potential for explosive growth. Still, topping its 320 holdings are companies on the larger side of “small cap,” including EnerSys (ENS), Questcor Pharmaceuticals (QCOR), RLJ Lodging Trust (RLJ), Euronet Worldwide (EEFT) and Louisiana-Pacific (LPX). None are weighted more than 0.72%, making this American Century fund a very balanced offering.

However, ASQIX does have a fairly high turnover ratio of 93%. Meanwhile, expenses run 0.88% annually.

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