Small-Cap Growth Fund
What is it? A mutual fund that invests in small companies with good growth prospects. According to Morningstar, small-cap funds invest in companies with market capitalizations of less than $2 billion. Other organizations may adhere to different valuations. Small-cap funds are more volatile than mid-cap and large-cap funds and generally do not seek income from dividends. Growth funds often have high P/E ratios because managers are willing to pay a premium for stocks of fast-growing companies.Added By: Allison
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