FCPGX vs. VISGX: Which Is the Better Small Cap Growth Fund?

Someone asks:

Do any of y’all use any of the small-cap growth index funds? I was looking at using both the FCPGX and the VISGX fund from Vanguard. Those any good or are there better ones you recommend from other companies instead of Fidelity?

Answers:

Michael O:

The best Fidelity small cap fund right now is FCPGX. It has a great track record. You can use Fidelity’s research tool to look at potential funds depending on your strategy. But you should look for funds with long track records of success. Some of Fidelity’s funds have been outperforming the index for decades!

Steven W:

Small cap funds have had a good run, but It looks like DFSTX and VSMAX 401k small cap blend have recently been under performing. I’m thinking about selling. What do you all think?

Aaron C:

We added a small cap value fund to one of our retirement accounts recently. I am curious to see how it performs.

Havir H:

Just FYI for those looking at investing in a Small Cap Growth Mutual Fund. I invested in “MSSMX” through my Roth IRA on October of last year. Crazily, I’m up 90% since my initial investment - I also like the fund manager and there processes. Generally, my favorite small cap growth fund is WAMCX but it isn’t available through most brokerages like Fidelity.

Ryan F:

They blow. Don’t get caught up in it. Has the highest volatility! Go mid cap and large cap, blue chip and FXAIX!

Mike R:

Here’s the thing about small cap growth funds. They have the highest growth multiple potential by far—which is awesome. But due to their relatively low cash flow, these companies are also far more susceptible to being completely wiped out from even moderate headwinds. A large cap company, on the other hand, more often than not, has the monetary capacity to weather significant headwinds—even if the business itself has stagnated.

Jason B:

I’m not a fan of Small Cap Growth. It’s the worst performing asset class over the history of the stock market. It’s known as the “black hole of investing”.