Top 5 Best Performing Small Cap Mutual Funds Year-to-Date

Zacks

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. First, they generate high volumes of sales in a booming market, leading to a rise in prices. Second, 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.

Mutual Fund Zacks Rank YTD
Virtus Small-Cap Sustainable Growth A #1 Strong Buy 18.8%
James Small-Cap #1 Strong Buy 10.4%
Virtus Quality Small-Cap #1 Strong Buy 6.1%
Praxis Small Cap A #1 Strong Buy 5.6%
Eaton Vance Tax Managed Small-Cap Value A #1 Strong Buy 2.0%

Virtus Small-Cap Sustainable Growth A (NASDAQ:PSGAX - News) seeks capital growth over the long term. The fund invests heavily in common stocks of small cap companies. These companies must have market capitalizations within the range of firms which are part of the Russell 2000 Growth Index. This small-cap mutual fund returned 18.76% over the last one year period.

The fund manager is Todd A. Beiley and he has managed this small-cap mutual fund since 2008.

James Small Cap (:JASCX) invests the majority of its assets in small-cap companies. The fund focuses on acquiring common stocks of companies whose market capitalizations are within the range of the Russell 2000 Index at the time of purchase. This small-cap mutual fund returned 10.43% over the last one year period.

The small-cap mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.50% compared to a category average of 1.45%.

Virtus Quality Small-Cap A (NASDAQ:PQSAX - News) seeks capital appreciation over the long term. The fund invests heavily in common stocks of small-cap companies. These firms must have market capitalizations identical to those which are part of the Russell 2000 Value Index. This small-cap mutual fund returned 6.06% over the last one year period.

The fund manager is Julie A. Kutasov and she has managed this small-cap mutual fund since 2008.

Praxis Small Cap A (NASDAQ:MMSCX - News) utilizes a large proportion of its assets to purchase equity securities of small-cap companies. The fund seeks to acquire common stocks, related convertible securities, warrants and fixed-income securities. This small-cap mutual fund returned 5.63% over the last one year period.

As of January 2012, this small-cap mutual fund held 87 issues, with 5.01% of its total assets invested in JPMorgan Prime Money Market Morgan.

Eaton Vance Tax Managed Small-Cap Value A (NASDAQ:ESVAX - News) seeks capital growth over the long-term on an after-tax basis. The fund invests the majority of its assets in small cap companies whose market capitalizations are within the range of the S&P SmallCap 600 Index. This small-cap mutual fund returned 1.97% over the last one year period.

The small-cap mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.59% compared to a category average of 1.34%.

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 PSGAX

Read the analyst report on PQSAX

Read the analyst report on MMSCX

Read the analyst report on ESVAX

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