When investors have the willingness to take short term
positions and the ability to bear a certain degree of risk,
small-cap funds could be the correct choice. These funds generate
significant demand driven sales during a market upswing, which
lead to an increase in their prices. Smaller firms also look to
continuously reinvest their profits back into their business.
This reassures shareholders of superior performance and higher
profit potential from such companies. Small Cap funds therefore
make excellent additions to a well-diversified portfolio.
Below we will share with you 5 top rated small-cap mutual
funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect
these mutual funds to outperform their peers in the future. To
view the Zacks Rank and past performance of all small-cap funds,
investors can click here to see the complete list of funds.
|
Mutual Fund
|
Zacks Rank
|
Total Return YTD
|
|
Schneider Small Cap Value
|
#1 Strong Buy
|
28.14%
|
|
Walthausen Small Cap Value
|
#1 Strong Buy
|
26.74%
|
|
Franklin International Small Cap Growth Advisor
|
#1 Strong Buy
|
23.42%
|
|
Huber Capital Small Cap Value
|
#1 Strong Buy
|
22.77%
|
|
Direxion Monthly Small Cap Bull 2X
|
#1 Strong Buy
|
22.45%
|
Schneider Small Cap Value
(SCMVX) seeks capital appreciation over the long term. The fund
invests a large share of its assets small cap firms. The fund
focuses on acquiring common stocks which are attractively priced
relative to their underlying value. A maximum of 20% of its
assets may be invested in foreign securities, including ADRs.
This small-cap mutual fund returned 28.90% over the last one year
period.
The fund manager is Arnold C. Schneider III and he has managed
this small-cap mutual fund since 1998.
Walthausen Small Cap Value
(WSCVX) focuses on purchasing common stocks of small cap
companies which have the ability to grow invested capital. The
firms invested in must have market capitalizations of $2 billion
or lower. This small-cap mutual fund returned 26.88% over the
last one year period.
The small-cap mutual fund has an expense ratio of 1.32%
compared to a category average of 1.40%.
Franklin International Small Cap Growth Advisor
(FKSCX) seeks capital growth over the long term. The fund invests
the majority of its assets in a wide range of tradable equity and
related securities of small foreign companies. It focuses on
purchasing common stock. This small-cap mutual fund returned
23.00% over the last one year period.
The fund manager is Edwin Lugo and he has managed this
small-cap mutual fund since 2006.
Huber Capital Small Cap Value
(HUSIX) invests the majority of its net assets in common stocks
issued by small cap companies. These firms must be those which
are attractively priced relative to their underlying value. It
focuses on acquiring domestic securities. However, it may invest
up to 20% of its assets in foreign securities. This small-cap
mutual fund returned 22.07% over the last one year period.
As of December 2012, this small-cap mutual fund held 46
issues, with 5.89 of its total assets invested in CNO Financial
Group, Inc.
Direxion Monthly Small Cap Bull 2X
(DXRLX) seeks to provide returns which are twice as much as the
monthly performance of the Russell 2000 Index. A large share of
the fund's assets is invested in securities which provide
exposure to the index. This small-cap mutual fund returned 23.91%
over the last one year period.
The small-cap mutual fund has an expense ratio of 1.90%
compared to a category average of 1.32%.
To view the Zacks Rank and past performance of all small-cap
mutual funds, investors can click here to see the complete list
of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward. Learn more about the Zacks
Mutual Fund Rank.
(DXRLX): ETF Research Reports
(FKSCX): ETF Research Reports
(HUSIX): ETF Research Reports
(SCMVX): ETF Research Reports
(WSCVX): ETF Research Reports
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