Top 5 Best Performing Small Cap Mutual Funds Year to Date

Zacks Investment Research

All equity mutual funds are inherently risky in nature, since they are party to the highs and lows of the equity markets. Yet, some of them come with a greater slice of risk than others and small-cap funds are good examples. These funds invest in shares of smaller companies and hope to reap dividends when they realize their full potential. However, this also means that they provide higher returns and such funds make good 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.

Mutual Fund

Zacks Rank

Total Return YTD

Royce Micro-Cap Investment

#1 Strong Buy

9.4%

Federated MDT Small Cap Growth A

#1 Strong Buy

9.2%

Kinetics Small Cap Opportunities No Load

#1 Strong Buy

8.8%

AllianceBernstein Small Cap Growth A

#1 Strong Buy

8.7%

Frost Small Cap Equity A

#1 Strong Buy

8.5%

 


Royce Micro-Cap Investment (RYOTX) seeks capital appreciation over the long term. The fund invests heavily in equity securities of micro-cap companies. Not more than 35% of its assets may be utilized to purchase foreign securities. A maximum of 10% of its assets may be invested in companies with headquarters in emerging economies. This small-cap mutual fund returned -1.8% over the last one year period.

The fund manager is Jenifer Taylor and he has managed this small-cap mutual fund since 2004.

Federated MDT Small Cap Growth A (QASGX) invests the majority of its assets in domestic small-cap companies. The fund focuses on acquiring common stocks of companies whose market capitalizations are identical to those included in the Russell 2000 Growth Index. This small-cap mutual fund returned 9.16% over the last one year period.

The small-cap mutual fund has a minimum initial investment of $1,500 and an expense ratio of 1.75% compared to a category average of 1.47%.

Kinetics Small Cap Opportunities No Load (KSCOX) seeks capital growth over the long term. The fund focuses on investing in common stock of domestic small cap companies.  This small-cap mutual fund returned -4.48% over the last one year period.

The fund manager is Brian M. Greenberg and she has managed this small-cap mutual fund since 2008.

AllianceBernstein Small Cap Growth A (QUASX) utilizes a large proportion of its assets to purchase equity securities of small-cap companies. These companies must be part of bottom 20% of total domestic equity market capitalization. This small-cap mutual fund returned 10.97% over the last one year period.

As of January 2012, this small-cap mutual fund held 99 issues, with 3.17% of its total assets invested in Alliancebernstein Fixed Income Shares, Inc. - Government Stif Por.

Frost Small Cap Equity A (FAHMX) seeks maximum total return. The fund invests the majority of its assets in equity securities of small-cap companies. It focuses on investing in firms whose shares are attractively priced relative to their intrinsic value. This small-cap mutual fund returned 4.13% over the last one year period.

The small-cap mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.35% 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

Read the analyst report on RYOTX

Read the analyst report on QASGX

Read the analyst report on KSCOX

Read the analyst report on QUASX

Read the analyst report on FAHMX

Zacks Investment Research



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