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.
Invesco SmallCapValue A
(VSCAX) seeks capital growth. The fund invests a large share of
its assets in small cap companies. The market capitalization of
these companies must be lower than the largest company included
in the Russell 2000 Index. A maximum of 25% of its assets may be
invested in foreign securities. This small-cap mutual fund has a
one year annualized return of 22.53%.
R. Canon Coleman II is the fund manager and he has managed
this small-cap mutual fund since 2010.
Dean Small Cap Value
(DASCX) invests heavily in the equity securities of domestic and
foreign small cap firms. The fund may also invest some of its
assets in medium and large cap companies. This small-cap mutual
fund has a one year annualized return of 17.33%.
As of December 2012, this small-cap mutual fund held 74
issues, with 2.19% of its total assets invested in Crane
Company.
Schneider Small Cap Value
(SCMVX) seeks capital growth over the long term. The majority of
its assets are invested in small cap stocks which are
undervalued. A maximum of 20% of its assets may be invested in
foreign securities as well as in American Depositary Receipts
(ADRs). This small-cap mutual fund has a one year annualized
return of 35.35%.
The small-cap mutual fund has an expense ratio of 1.15%
compared to a category average of 1.40%.
Keeley Small Cap Value A
(KSCVX) invests heavily in common stocks of small cap firms. The
market capitalization of these companies must be equal to or
lower than $3.5 billion. However, it may invest in companies with
higher market capitalizations, if the fund meets other criteria.
The small-cap mutual fund has a one year annualized return of
23.82%.
John L. Keeley Jr. is the fund manager and he has managed this
small-cap mutual fund since 1993.
Westcore Small-Cap Value
(WTSVX) seeks capital growth over the long term. It invests
heavily in small cap companies. The companies it invests in must
have market capitalizations within the range of the Russell 2000
index. This small-cap mutual fund has a one year annualized
return of 9.65%.
The small-cap mutual fund has an expense ratio of 1.30%
compared to a category average of 1.40%.
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.
View All Zacks #1 Ranked Mutual Funds
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