INVESTORS Login About Putnam Careers Contact us Products How we invest Retirement College savings Perspectives Forms Tax center My accounts Home Mutual funds Select another fund: California Tax Exempt Income Fund Convertible Securities Fund Diversified Income Trust Dynamic Asset Allocation Balanced Fund Dynamic Asset Allocation Conservative Fund Dynamic Asset Allocation Growth Fund Dynamic Risk Allocation Fund Emerging Markets Equity Fund Fixed Income Absolute Return Fund Floating Rate Income Fund Focused Equity Fund Focused International Equity Fund George Putnam Balanced Fund Global Health Care Fund Global Income Trust Global Technology Fund Government Money Market Fund Growth Opportunities Fund High Yield Fund Income Fund Intermediate-Term Municipal Income Fund International Capital Opportunities Fund International Equity Fund International Value Fund Large Cap Value Fund Massachusetts Tax Exempt Income Fund Minnesota Tax Exempt Income Fund Money Market Fund Mortgage Opportunities Fund Mortgage Securities Fund Multi-Asset Absolute Return Fund Multi-Cap Core Fund New Jersey Tax Exempt Income Fund New York Tax Exempt Income Fund Ohio Tax Exempt Income Fund Pennsylvania Tax Exempt Income Fund Putnam PanAgora Risk Parity Fund Research Fund Retirement Advantage 2025 Fund Retirement Advantage 2030 Fund Retirement Advantage 2035 Fund Retirement Advantage 2040 Fund Retirement Advantage 2045 Fund Retirement Advantage 2050 Fund Retirement Advantage 2055 Fund Retirement Advantage 2060 Fund Retirement Advantage 2065 Fund Retirement Advantage Maturity Fund RetirementReady 2025 Fund RetirementReady 2030 Fund RetirementReady 2035 Fund RetirementReady 2040 Fund RetirementReady 2045 Fund RetirementReady 2050 Fund RetirementReady 2055 Fund RetirementReady 2060 Fund RetirementReady 2065 Fund RetirementReady Maturity Fund Short Duration Bond Fund Short-Term Municipal Income Fund Small Cap Growth Fund Small Cap Value Fund Strategic Intermediate Municipal Fund Sustainable Future Fund Sustainable Leaders Fund Tax Exempt Income Fund Tax-Free High Yield Fund Ultra Short Duration Income Fund Class A Class B Class C Class R Class R6 Class Y Email LinkedIn Twitter Facebook ACTIVE EQUITIES Small Cap Growth Fund (PSYGX) Seeking to capitalize on growing small companies Small Cap Growth Fund received an Overall Morningstar Rating™ of HIGHLIGHTS LITERATURE PERFORMANCE HOLDINGS EXPENSES Objective The fund seeks capital appreciation. Strategy and process Small companies Often overlooked by Wall Street analysts, the stocks of small companies can represent attractive opportunities. A focus on growth Small companies tend to be flexible and innovative, and can often expand their earnings at faster rates than larger companies. A disciplined process The portfolio manager uses a disciplined bottom-up fundamental investment process that focuses on quality and growth. Fund price Yesterday’s close 52-week high 52-week low Net asset value $82.04 -3.11% | $-2.63 $88.84 11/08/21 $67.44 12/04/20 Historical fund price Fund facts as of 10/31/21 Total net assets $961.79M Turnover (fiscal year end) 70% Dividend frequency Annually Number of holdings 90 Fiscal year-end June CUSIP / Fund code 746763499 / 1852 Inception date 11/03/03 Category Growth Open to new investors Ticker PSYGX Management team Years at Putnam Years in industry William J. Monroe, CFA Portfolio Manager Funds managed Small Cap Growth Fund See profile Literature Fund documents Prospectuses/SAI Fact Sheet (R6 share) (PDF) Fact Sheet (YA share) (PDF) Annual Fund Report (PDF) Semiannual Fund Report (PDF) Quarterly Commentary (PDF) White Paper: Integrated Insights (PDF) Related topics Putnam's Tax Center Perspectives Risk managers: Essential partners for delivering performance A successful risk team is one that can analyze multiple measures of risk and work with investment teams before trades are executed to capture alpha. The rebound of Chinese tech under "common prosperity" Technology stocks in China may offer compelling buying opportunities, but investors must understand the Chinese government’s long-term initiatives. Emerging markets leading the way in innovation Innovation is driving exciting growth across emerging market countries. Performance Consistency of positive performance over five years 80%positiveperiods Dots represent 5-year returns in rolling quarter-end periods since inception. 61 positive 5-year periods 15 negative 5-year periods Performance shown above does not reflect the effects of any sales charges. Click on the dots to see specific returns in each five-year period as of the date revealed. Note that returns of 0.00% are counted as positive periods. For complete fund performance, please see below. 25.04% Best 5-year annualized return -8.37% Worst 5-year annualized return 8.94% Average 5-year annualized return Total return (%) as of 09/30/21 Annual performance as of 09/30/21 Annual Cumulative Small Cap Growth Fund Russell 2000 Growth Index 1 yr. 3 yrs. 5 yrs. 10 yrs. 0% 10% 20% 30% 40% Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs. Before sales charge 36.12% 21.60% 22.81% 18.99% After sales charge N/A N/A N/A N/A Russell 2000 Growth Index 33.27% 11.70% 15.34% 15.74% Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. The "before sales charge" performance does not reflect the current maximum sales charges, which we explain below. If performance did reflect the charges, it would be lower. The "after sales charge" performance (or returns at public offering price) varies by share class and fund. For class A and class M shares, the current maximum initial sales charges are 5.75% and 3.50% for equity funds and 4.00% and 3.25% for income funds, respectively (with these exceptions: 2.25% for class A of Putnam Floating Rate Income Fund, Short-Term Municipal Income, Short Duration Bond Fund, and Fixed Income Absolute Return Fund). Class B share performance reflects the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declines to 1% in the sixth year, and is eliminated thereafter (except for Putnam Floating Rate Income Fund, Putnam Short Duration Bond Fund, Putnam Fixed Income Absolute Return Fund, and Putnam Short-Term Municipal Income Fund; for these funds, the CDSC is 1% in the first year, declines to 0.5% in the second year, and is eliminated thereafter). Class C share performance reflects a 1% CDSC the first year that is eliminated thereafter. Performance for class B, C, M, N, R, and Y shares prior to their inception is derived from the historical performance of class A shares by adjusting for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (note, for two funds — Putnam Tax-Free High Yield Fund and Putnam Strategic Intermediate Municipal Fund performance prior to inception is based on the historical performance of class B shares). Performance for class A, C, R6, and Y shares of Putnam Mortgage Opportunities Fund before their inception is derived from the historical performance of class I shares, which has been adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares. The "after sales charge" performance (at public offering price) for class N shares reflects the current maximum initial sales charge of 1.50%. Class R, R3, R4, R5, and R6 shares, which are available to qualified employee-benefit plans only, are sold without an initial sales charge and have no CDSC. Class Y shares are generally only available for corporate and institutional clients and have no initial sales charge. Performance for class R3 and R4 shares prior to their inception is derived from the historical performance of class Y shares by adjusting for the higher operating expenses for such shares. Performance for class R5 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower expenses; had it been adjusted, performance would be higher (with the exception of the RetirementReady Maturity, 2025, 2030, 2035, and 2040 Funds, for which performance is derived from the historical performance of class R6 shares and has been adjusted for the higher operating expenses for such shares; and the RetirementReady 2045, 2050, 2055, and 2060 Funds, for which performance is derived from the historical performance of class R6 shares and has not been adjusted for the lower expenses; had it been adjusted, performance would be higher). Performance for class R6 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower operating expenses; had it been adjusted, performance would be higher. For a portion of the period, some funds had expenses limitations or had been sold on a limited basis with limited assets and expenses. Had these limits not been in place, performance would be lower. Performance snapshot Before sales charge After sales charge 1 mt. as of 10/31/21 6.66% - YTD as of 11/26/21 14.37% - Risk-adjusted performance as of 10/31/21 Alpha (3 yrs.) 14.07 Sharpe ratio (3 yrs.) 1.35 Treynor ratio (3 yrs.) 34.46 Information ratio (3 yrs.) 1.39 Volatility as of 10/31/21 Standard deviation (3 yrs.) 21.25% Beta 0.84 R-squared 0.89 Capture ratio as of 10/31/21 Up-market (3 yrs.) 101.27 Down-market (3 yrs.) 65.50 Lipper rankings as of 10/31/21 Time period Rank/Funds in category Percentile ranking 1 yr. 327/704 47% 3 yrs. 45/669 7% 5 yrs. 85/592 15% 10 yrs. 44/443 10% Lipper category: Small-Cap Growth Funds Morningstar Ratings™ as of 10/31/21 Time period Funds in category Morningstar Rating™ Overall 574 3 yrs. 574 5 yrs. 504 10 yrs. 380 Morningstar category: Small Growth Distributions Record/Ex dividend date 12/04/20 Payable date 12/08/20 Income -- Extra income -- Short-term cap. gain $0.91 Long-term cap. gain $2.43 Lipper rankings are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Lipper. Past performance is not indicative of future results. The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Holdings Top 10 holdings as of 10/31/21 Inmode 4.10% Tfi International 2.70% Boot Barn Holdings 2.61% Medpace Holdings 2.47% Colliers International Group 2.25% Paylocity Holding Corp 2.19% Manhattan Associates 2.15% Hamilton Lane 2.05% Techtarget 2.01% Nova 1.90% Top 10 holdings, percent of portfolio 24.43% Prior top 10 holdings Full portfolio Select month Portfolio composition as of 10/31/21 Common stock 98.76% Cash and net other assets 1.24% Equity statistics as of 10/31/21 Median market cap $5.18B Weighted average market cap $6.36B Price to book 7.60 Price to earnings 38.70 Fund characteristics will vary over time. Due to rounding, percentages may not equal 100%. Consider these risks before investing: Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. The value of investments in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political or financial market conditions, investor sentiment and market perceptions, government actions, geopolitical events or changes, and factors related to a specific issuer, geography, industry or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund's portfolio holdings. These risks are generally greater for small and midsize companies. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund's other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund. Top industry sectors as of 10/31/21 Health care 26.49% Information technology 22.21% Industrials 16.91% Consumer discretionary 15.38% Financials 6.09% Communication services 4.67% Materials 2.44% Real estate 2.25% Consumer staples 1.56% Other 2.00% The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector. Sectors will vary over time. Expenses Expense ratio Class A Class B Class C Class R Class R6 Class Y Total expense ratio 1.21% 1.96% 1.96% 1.46% 0.83% 0.96% What you pay 1.21% 1.96% 1.96% 1.46% 0.83% 0.96% Sales charge Investment Breakpoint Class A Class B Class C Class R Class R6 Class Y $0-$49,999 5.75% 0.00% 0.00% -- -- -- $50,000-$99,999 4.50% 0.00% 0.00% -- -- -- $100,000-$249,999 3.50% -- 0.00% -- -- -- $250,000-$499,999 2.50% -- 0.00% -- -- -- $500,000-$999,999 2.00% -- 0.00% -- -- -- $1M-$4M 0.00% -- -- -- -- -- $4M-$50M 0.00% -- -- -- -- -- $50M+ 0.00% -- -- -- -- -- CDSC Class A (sales for $1,000,000+) Class B Class C Class R Class R6 Class Y 0 to 9 mts. 1.00% 5.00% 1.00% -- -- -- 9 to 12 mts. 1.00% 5.00% 1.00% -- -- -- 2 yrs. 0.00% 4.00% 0.00% -- -- -- 3 yrs. 0.00% 3.00% 0.00% -- -- -- 4 yrs. 0.00% 3.00% 0.00% -- -- -- 5 yrs. 0.00% 2.00% 0.00% -- -- -- 6 yrs. 0.00% 1.00% 0.00% -- -- -- 7+ yrs. 0.00% 0.00% 0.00% -- -- -- The Russell 2000 Growth Index is an unmanaged index of those companies in the small-cap Russell 2000 Index chosen for their growth orientation. You cannot invest directly in an index. Consider these risks before investing: Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. The value of investments in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political or financial market conditions, investor sentiment and market perceptions, government actions, geopolitical events or changes, and factors related to a specific issuer, geography, industry or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund's portfolio holdings. These risks are generally greater for small and midsize companies. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund's other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund. 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