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
.
Longleaf Partners Small-Cap
(
LLCSX
) seeks long-term capital appreciation by investing in small-cap
companies. Equity securities, including related convertible
securities constitute the fund's major investments. A maximum of
30% of its assets may be used to purchase foreign securities,
including those issued from emerging markets. This small-cap mutual
fund has a three year annualized return of 19.86%.
The small-cap mutual fund has an expense ratio of 0.92% compared
to a category average of 1.29%.
Manning & Napier Small Cap A
(
MNSMX
) invests heavily in small cap companies. These firms must have
market capitalizations lower than $3 billion. The fund may invest
in both domestic and foreign stocks, including emerging market
securities as well as in ADRs. This small-cap mutual fund has a
three year annualized return of 14.66%.
The fund manager is Jeffrey A. Herrmann and he has managed this
small-cap mutual fund since 1992.
Sit Small Cap Growth
(
SSMGX
) seeks long-term capital appreciation by investing in small-cap
companies. The fund invests the majority of its assets in small
companies located in the U.S. which have the potential to deliver
above average growth. This small-cap mutual fund has a three year
annualized return of 19.1%.
As of December 2011, this small-cap mutual fund held 88 issues,
with 2.39% of its total assets invested in Ultimate Software Group.
Inc.
Legg Mason ClearBridge Small Cap Growth A
(
SASMX
) invests a large share of its net assets in small cap companies
and related instruments. The fund concentrates on investing in
small domestic companies which focus on delivering growth. This
small-cap mutual fund has a three year annualized return of
20.19%.
The small-cap mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.36% compared to a category average
of 1.45%.
Buffalo Small Cap
(
BUFSX
) seeks capital growth over the long term. The fund invests the
majority of its assets in common, preferred stocks and related
convertible securities of domestic small-cap companies. A maximum
of 20% of its assets may be invested in ADRS. This small-cap mutual
fund has a three year annualized return of 13.53%.
The fund manager is Christian A. Andreach and he has managed
this small-cap mutual fund since 2002.
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 at
http://www.zacks.com/funds
.
View All Zacks #1 Ranked Mutual Funds
(BUFSX): ETF Research Reports
(LLCSX): ETF Research Reports
(MNSMX): ETF Research Reports
(SASMX): ETF Research Reports
(SSMGX): ETF Research Reports
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