MSSMX vs. NESGX

Last updated Aug 1, 2026

MSSMX (Morgan Stanley Institutional Inception Fund Class A) and NESGX (Needham Small Cap Growth Fund) are both Small Cap Growth Equities funds. Over the past 10 years, MSSMX returned 15.01%/yr vs 17.52%/yr for NESGX. Their 0.79 correlation means they have sometimes moved together and sometimes differently. MSSMX charges 1.35%/yr vs 1.85%/yr for NESGX.

Performance

MSSMX vs. NESGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morgan Stanley Institutional Inception Fund Class A (MSSMX) and Needham Small Cap Growth Fund (NESGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSSMX achieves a 2.93% return, which is significantly lower than NESGX's 52.82% return. Over the past 10 years, MSSMX has underperformed NESGX with an annualized return of 15.01%, while NESGX has yielded a comparatively higher 17.52% annualized return.

MSSMX

• 1D: 2.93%
• 1M: -4.22%
• 6M: 7.61%
• YTD: 2.93%
• 1Y: -0.27%
• 3Y*: 9.66%
• 5Y*: -8.92%
• 10Y*: 15.01%
• ALL TIME*: 10.62%

NESGX

• 1D: 5.19%
• 1M: -10.43%
• 6M: 37.28%
• YTD: 52.82%
• 1Y: 74.25%
• 3Y*: 23.55%
• 5Y*: 5.21%
• 10Y*: 17.52%
• ALL TIME*: 12.75%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
MSSMX Morgan Stanley Institutional Inception Fund Class A	$0.00	$0.00	$0.00
NESGX Needham Small Cap Growth Fund	$0.00	$0.00	$0.00

MSSMX vs. NESGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MSSMX Morgan Stanley Institutional Inception Fund Class A	2.93%	0.76%	29.15%	54.22%	-59.57%	-4.29%	149.49%	77.58%	-0.03%	22.42%
NESGX Needham Small Cap Growth Fund	52.82%	10.50%	12.76%	5.68%	-30.21%	10.59%	71.90%	54.42%	-5.43%	11.96%

Correlation

The correlation between MSSMX and NESGX is 0.64, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.64
Correlation (3Y) Balances recent behavior with more history.	0.71
Correlation (5Y) Shows whether the relationship held over a longer period.	0.76
Correlation (10Y) Provides a long-term view across more market conditions.	0.74
Correlation (All Time) Calculated using the full available price history since May 23, 2002	0.79

The correlation between MSSMX and NESGX shifts across timeframes, from 0.64 (1 year) to 0.79 (all time), reflecting how their relationship changes across market environments.

Return for Risk

MSSMX vs. NESGX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

MSSMX

MSSMX Risk / Return Rank: 4
MSSMX Sharpe Ratio Rank: 3
MSSMX Sortino Ratio Rank: 4
MSSMX Omega Ratio Rank: 4
MSSMX Calmar Ratio Rank: 3
MSSMX Martin Ratio Rank: 3

NESGX

NESGX Risk / Return Rank: 80
NESGX Sharpe Ratio Rank: 82
NESGX Sortino Ratio Rank: 73
NESGX Omega Ratio Rank: 71
NESGX Calmar Ratio Rank: 86
NESGX Martin Ratio Rank: 88

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

MSSMX vs. NESGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley Institutional Inception Fund Class A (MSSMX) and Needham Small Cap Growth Fund (NESGX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MSSMX	NESGX	Difference
Sharpe ratio: Return per unit of total volatility	-0.11	1.94	-2.05
Sortino ratio: Return per unit of downside risk	0.07	2.47	-2.41
Omega ratio: Gain probability vs. loss probability	1.01	1.31	-0.30
Calmar ratio: Return relative to maximum drawdown	-0.10	3.00	-3.11
Martin ratio: Return relative to average drawdown	-0.20	11.77	-11.98

MSSMX vs. NESGX - Sharpe Ratio Comparison

The current MSSMX Sharpe Ratio is -0.11, which is lower than the NESGX Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of MSSMX and NESGX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MSSMX vs. NESGX - Drawdown Comparison

The maximum MSSMX drawdown since its inception was -76.24%, which is greater than NESGX's maximum drawdown of -50.29%. Use the drawdown chart below to compare losses from any high point for MSSMX and NESGX.

Drawdown Indicators

	MSSMX	NESGX	Difference
Max Drawdown Largest peak-to-trough decline	-76.24%	-50.29%	-25.95%
Max Drawdown (1Y) Largest decline over 1 year	-32.92%	-22.14%	-10.78%
Max Drawdown (3Y) Largest decline over 3 years	-32.92%	-35.27%	+2.35%
Max Drawdown (5Y) Largest decline over 5 years	-71.12%	-50.05%	-21.07%
Max Drawdown (10Y) Largest decline over 10 years	-76.24%	-50.29%	-25.95%
Current Drawdown Current decline from peak	-48.60%	-18.09%	-30.51%
Average Drawdown Average peak-to-trough decline	-24.72%	-11.64%	-13.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.49%	5.67%	+10.82%

Volatility

MSSMX vs. NESGX - Volatility Comparison

The current volatility for Morgan Stanley Institutional Inception Fund Class A (MSSMX) is 8.53%, while Needham Small Cap Growth Fund (NESGX) has a volatility of 13.35%. This indicates that MSSMX experiences smaller price fluctuations and is considered to be less risky than NESGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSSMX	NESGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.53%	13.35%	-4.82%
Volatility (6M) Calculated over the trailing 6-month period	23.96%	26.13%	-2.17%
Volatility (1Y) Calculated over the trailing 1-year period	31.29%	34.31%	-3.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	38.12%	30.16%	+7.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	34.42%	26.40%	+8.02%

MSSMX vs. NESGX - Expense Ratio Comparison

MSSMX has a 1.35% expense ratio, which is lower than NESGX's 1.85% expense ratio.

Dividends

MSSMX vs. NESGX - Dividend Comparison

Neither MSSMX nor NESGX has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSSMX Morgan Stanley Institutional Inception Fund Class A	0.00%	0.00%	1.16%	0.00%	0.14%	36.28%	13.10%	45.60%	18.04%	57.39%	3.76%	9.73%
NESGX Needham Small Cap Growth Fund	0.00%	0.00%	0.00%	0.00%	4.16%	25.09%	13.69%	8.43%	22.26%	8.94%	6.67%	2.52%

Frequently Asked Questions

Can I hold both MSSMX and NESGX in my portfolio?

MSSMX and NESGX have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSSMX or NESGX?

NESGX has higher volatility (13.35%) compared to MSSMX (8.53%). In terms of maximum drawdown, MSSMX dropped -76.24% vs NESGX's -50.29%.

Which has better risk-adjusted returns?

NESGX currently has the higher Sharpe Ratio (1.94 vs -0.11), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.