MSSMX vs. NESIX

Last updated Jun 6, 2026

MSSMX (Morgan Stanley Institutional Inception Fund Class A) and NESIX (Needham Small Cap Growth Fund Institutional) are both Small Cap Growth Equities funds. Over the past 5 years, MSSMX returned -7.96%/yr vs 10.47%/yr for NESIX. A 0.74 correlation means they provide meaningful diversification when combined. MSSMX charges 1.35%/yr vs 1.18%/yr for NESIX.

Performance

MSSMX vs. NESIX - 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 Institutional (NESIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSSMX achieves a 6.52% return, which is significantly lower than NESIX's 81.20% return.

MSSMX

• 1D: 1.35%
• 1M: 3.58%
• YTD: 6.52%
• 6M: -0.44%
• 1Y: 8.05%
• 3Y*: 17.14%
• 5Y*: -7.96%
• 10Y*: 16.25%

NESIX

• 1D: 0.23%
• 1M: 16.29%
• YTD: 81.20%
• 6M: 75.35%
• 1Y: 124.55%
• 3Y*: 34.27%
• 5Y*: 10.47%
• 10Y*: —

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

MSSMX vs. NESIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MSSMX Morgan Stanley Institutional Inception Fund Class A	6.52%	0.76%	29.15%	54.22%	-59.57%	-4.29%	149.49%	77.58%	-0.03%	21.49%
NESIX Needham Small Cap Growth Fund Institutional	81.20%	11.16%	13.47%	5.85%	-29.71%	11.36%	73.06%	55.28%	-4.87%	12.63%

Correlation

The correlation between MSSMX and NESIX is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (All Time) Calculated using the full available price history since Jan 4, 2017	0.74

The correlation between MSSMX and NESIX shifts across timeframes, from 0.65 (1 year) to 0.77 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

MSSMX vs. NESIX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MSSMX

MSSMX Risk / Return Rank: 4
MSSMX Sharpe Ratio Rank: 4
MSSMX Sortino Ratio Rank: 5
MSSMX Omega Ratio Rank: 5
MSSMX Calmar Ratio Rank: 4
MSSMX Martin Ratio Rank: 4

NESIX

NESIX Risk / Return Rank: 94
NESIX Sharpe Ratio Rank: 99
NESIX Sortino Ratio Rank: 91
NESIX Omega Ratio Rank: 86
NESIX Calmar Ratio Rank: 97
NESIX Martin Ratio Rank: 98

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MSSMX vs. NESIX - 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 Institutional (NESIX). 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.

	MSSMX	NESIX	Difference
Sharpe ratio: Return per unit of total volatility	0.24	4.10	-3.86
Sortino ratio: Return per unit of downside risk	0.55	4.49	-3.95
Omega ratio: Gain probability vs. loss probability	1.06	1.58	-0.52
Calmar ratio: Return relative to maximum drawdown	0.22	7.23	-7.01
Martin ratio: Return relative to average drawdown	0.46	29.97	-29.51
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MSSMX vs. NESIX - Sharpe Ratio Comparison

The current MSSMX Sharpe Ratio is 0.24, which is lower than the NESIX Sharpe Ratio of 4.10. The chart below compares the historical Sharpe Ratios of MSSMX and NESIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	MSSMX	NESIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.24	4.10	-3.86
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.21	0.36	-0.57
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	0.75	-0.36

Drawdowns

MSSMX vs. NESIX - Drawdown Comparison

The maximum MSSMX drawdown since its inception was -76.24%, which is greater than NESIX's maximum drawdown of -49.61%. Use the drawdown chart below to compare losses from any high point for MSSMX and NESIX.

Drawdown Indicators

	MSSMX	NESIX	Difference
Max Drawdown Largest peak-to-trough decline	-76.24%	-49.61%	-26.63%
Max Drawdown (1Y) Largest decline over 1 year	-32.92%	-17.12%	-15.80%
Max Drawdown (3Y) Largest decline over 3 years	-32.92%	-35.21%	+2.29%
Max Drawdown (5Y) Largest decline over 5 years	-73.30%	-49.61%	-23.69%
Max Drawdown (10Y) Largest decline over 10 years	-76.24%	—	—
Current Drawdown Current decline from peak	-46.80%	-0.58%	-46.22%
Average Drawdown Average peak-to-trough decline	-24.60%	-14.98%	-9.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.42%	4.12%	+11.30%

Volatility

MSSMX vs. NESIX - Volatility Comparison

Morgan Stanley Institutional Inception Fund Class A (MSSMX) has a higher volatility of 9.53% compared to Needham Small Cap Growth Fund Institutional (NESIX) at 8.80%. This indicates that MSSMX's price experiences larger fluctuations and is considered to be riskier than NESIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSSMX	NESIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.53%	8.80%	+0.73%
Volatility (6M) Calculated over the trailing 6-month period	22.52%	21.10%	+1.42%
Volatility (1Y) Calculated over the trailing 1-year period	29.92%	30.15%	-0.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	37.89%	29.28%	+8.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	34.32%	26.43%	+7.89%

MSSMX vs. NESIX - Expense Ratio Comparison

MSSMX has a 1.35% expense ratio, which is higher than NESIX's 1.18% expense ratio.

Dividends

MSSMX vs. NESIX - Dividend Comparison

Neither MSSMX nor NESIX 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%
NESIX Needham Small Cap Growth Fund Institutional	0.00%	0.00%	0.00%	0.00%	3.93%	23.92%	13.26%	8.25%	21.96%	8.89%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MSSMX and NESIX in my portfolio?

MSSMX and NESIX have a correlation of 0.65, 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 NESIX?

MSSMX has higher volatility (9.53%) compared to NESIX (8.80%). In terms of maximum drawdown, MSSMX dropped -76.24% vs NESIX's -49.61%.

Which has better risk-adjusted returns?

NESIX currently has the higher Sharpe Ratio (4.10 vs 0.24), 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.