RidgeWorth Investments' recently released publication, "The Overlooked Potential of Small Cap Growth Funds" suggests adding diversified small cap growth funds to retirement plans for added growth. With most Americans lacking adequate funds for retirement, many tend to favor conservative investments to play it safe. But for those with retirement shortfalls, RidgeWorth suggests considering incorporating a small cap strategy to provide additional stock and sector diversification while adding only moderate volatility.
"Small cap companies tend to grow faster than their mid-size and large counterparts because they have more potential for rapid revenue and earnings growth due to innovative products and services," says RidgeWorth’s Chris Guinther. The RidgeWorth Small Cap Growth Stock Fund employs a stock selection strategy that seeks companies that possess above-average sustainable earnings growth, positive secular trends and disruptive products or services, meaning the potential to change the business landscape.
RidgeWorth’s small cap report is here; more information about the firm is available on RidgeWorth’s NAPA Partner Corner page.
