BNY Mellon's Small/Mid Cap Growth Fund (Class A shares at NAV) recorded a performance that fell short of its benchmark, the Russell 2500 Growth Index, during the third quarter of 2025.
Key sectors contributing positively to the fund's relative performance included financials, where an intentionally reduced exposure to the financial services sector and successful individual stock selections played significant roles. Conversely, the fund's stock choices within the industrials sector, particularly in the electrical equipment segment, proved to be a drag on its overall returns for the period.
The investment landscape for small and mid-cap growth funds is dynamic, and quarterly performance fluctuations are common. While the recent quarter presented challenges, focusing on long-term investment strategies and disciplined portfolio management remains crucial for achieving sustained growth. Investors should consider these factors when evaluating the fund's potential and how it aligns with their own financial objectives, understanding that market conditions and sector-specific trends can significantly influence outcomes.
