Zacks #1 Ranked Small-Cap Mutual Funds - Best of Funds

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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 .

Huber Capital Small Cap Value (HUSIX) seeks capital growth. A majority of its net assets is invested in those undervalued small cap companies whose market cap is below $3 billion. Additionally, these should also be listed on the Russell 2000 Value Index. A maximum of 20% of its assets is invested in dollar denominated foreign securities and ADRs. The small-cap mutual fund has a three year annualized return of 24.89%.

The small-cap mutual fund has an expense ratio of 1.85% compared to a category average of 1.41%.

Pacific Advisors Small Cap Value A (PASMX) invests a large share of its net assets in small companies. Companies are selected on the basis of their growth potential and unique advantages. The small-cap mutual fund has a three year annualized return of 22.42%.

George A. Henning is the fund manager and he has managed this small-cap mutual fund since 1993.

Bogle Small Cap Growth (BOGLX) seeks capital growth on a long-term basis. A majority of its investment is parked in those companies whose market cap is equal to the ones listed on the Russell 2000 Index. The small-cap mutual fund has a three year annualized return of 20.40%.

As of June 2013, this small-cap mutual fund held 145 issues, with 1.38% of its total assets invested in Pilgrims Pride Corp.

Invesco SmallCapValue A (VSCAX) invests in small cap companies whose market cap is not more than the issuer with the largest market cap listed in Russell 2000 Index. A maximum of 25% of its assets is invested in securities issued by foreign companies. The small-cap mutual fund has a three year annualized return of 17.47%.

The small-cap mutual fund has a minimum initial investment $1,000 and an expense ratio of 1.03% compared to a category average of 1.41%.

Keeley Small Cap Value A (KSCVX) seeks capital growth. The fund invests the majority of its assets in equity of small cap companies whose market cap is less than $3.5 billion. The fund focuses on companies which are either undervalued or undergoing significant changes. The small-cap mutual fund has a three year annualized return of 17.70%.

John L. Keeley Jr. is the fund manager and he has managed this small-cap mutual fund since 1993.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Mutual Funds


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