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
term.
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.
HighMark Small Cap Core Fiduciary
(HSAFX) seeks capital growth over the long term. The fund invests
a large share of its assets in domestic small cap stocks which
are undervalued and have good earnings potential. Not more than
20% of its assets may be used to purchase foreign securities.
This small-cap mutual fund has a three year annualized return of
18.44%.
David Goerz is the fund manager and he has managed this
small-cap mutual fund since 2007.
Needham Small Cap Growth
(NESGX) 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 8.00%.
As of September 2012, this small-cap mutual fund held 43
issues, with 7.36% of its total assets invested in Emulex
Corporation.
Frost Small Cap Equity A
(FAHMX) seeks maximum total return. The fund invests a large
share of its assets in small cap companies. It aims to purchase
equity securities which are attractively priced relative to the
underlying value of the firm. This small-cap mutual fund has a
three year annualized return of 8.77%.
The small-cap mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 1.37% compared to a category
average of 1.47%.
Cambiar Small Cap
(CAMSX) 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 15.70%.
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
(FRMPX) 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
13.46%.
The small-cap mutual fund has a minimum initial investment of
$3,000 and an expense ratio of 1.47% compared to a category
average of 1.47%.
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
(CAMSX): ETF Research Reports
(FAHMX): ETF Research Reports
(FRMPX): ETF Research Reports
(HSAFX): ETF Research Reports
(NESGX): ETF Research Reports
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