Investors looking to mop up handsome gains over a short run
often invest in small cap funds. Though riskier in character than
other fund categories, these funds have the ability to deliver
appreciably higher returns due to two primary reasons. Firstly,
they generate high volumes of sales in a booming market, leading to
a rise in prices. In addition, research has shown that smaller
firms reinvest their profits back into their business. This
reassures shareholders of better performance over the long
Below we will share with you 5 top rated small-cap mutual funds.
Each has earned a
(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
Manning & Napier Small Cap A
) seeks capital growth over the long term. The fund 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 11.95%.
The fund manager is Christian A. Andreach and he has managed
this small-cap mutual fund since 2002.
Needham Small Cap Growth
) invests the majority of its assets in domestic equity securities
of companies traded on a domestic security exchanges. The fund
focuses on acquiring stocks which are attractively priced relative
to their underlying value. The small-cap mutual fund has a three
year annualized return of 11.3%.
As of June 2012, this small-cap mutual fund held 62 issues, with
7.39% of its total assets invested in Emulex Corporation.
Franklin Small Cap Value A
) seeks total return over the long term. The fund invests a large
share of its assets in small cap companies, primarily in common
stocks. These firms must have market capitalizations below $3.5
billion at the time of purchase. A maximum of 25% of its assets may
be utilized to purchase. This small-cap mutual fund has a three
year annualized return of 10.96%.
The small-cap mutual fund has an expense ratio of 1.21% compared
to a category average of 1.42%.
Cambiar Small Cap
) invests heavily in small-cap companies. The market capitalization
of these companies must be lower than $3.5 billion or within the
range of the Russell 2000 Index, whichever is greater. The
small-cap mutual fund has a three year annualized return of
Jeffrey H A. Susman is the fund manager and he has managed this
small-cap mutual fund since 2012.
Nuveen Small Cap Growth Opportunities A
) seeks capital appreciation. Common stocks of companies with
market capitalizations under # billion constitute the majority of
its investments. A maximum of 15% of its assets are invested in
non-dollar denominated foreign securities. This small-cap mutual
fund has a three year annualized return of 15.05%.
The small-cap mutual fund has an expense ratio of 1.47% compared
to a category average of 1.45%.
To view the Zacks Rank and past performance of all small-cap
mutual funds, investors can click here to see the complete list of
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
View All Zacks #1 Ranked Mutual Funds
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