Zacks #1 Ranked Small-Cap Mutual Funds
For investors looking for diversification across different sectors and companies, small-cap funds would be a good choice. These funds invest in different small cap firms from various sectors, as a result of which the risk gets diversified. Investors willing to get significantly high returns and having a high risk appetite should invest in these funds. As these funds focus on small cap companies it enjoys an additional benefit of higher flexibility because of the quicker decision making of these firms.
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.
Invesco Small Cap Value A (VSCAX) invests in small cap companies whose market cap is not more than the largest capitalized issuer 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 19.92%.
The small-cap mutual fund has an expense ratio of 1.12% compared to a category average of 1.41%.
Timothy Plan Small Cap Value A (TPLNX) seeks capital growth on a long-term basis. The fund focusses on acquiring small cap stocks having a market cap not exceeding $2 billion. Investments can also be parked in equity securities issued by foreign countries as American Depository Receipts (ADRs). The small-cap mutual fund has a three year annualized return of 20.49%.
Lisa R. Dong is the fund manager and he has managed this small-cap mutual fund since 2008.
Calvert Small Cap A (CCVAX) invests a large share of net assets in small companies having a maximum market cap of $3 billion. A maximum of 25% of assets can also be invested in foreign securities. The small-cap mutual fund has a three year annualized return of 18.28%.
As of June 2013, this small-cap mutual fund held 61 issues, with 3.43% of its total assets invested in Sanmina Corp.
James Small Cap (JASCX) invests in domestic and foreign companies which are attractively priced relative to their underlying value. A majority of the net assets is invested in equity securities of small cap companies. The small-cap mutual fund has a three year annualized return of 18.77%.
The small-cap mutual fund has a minimum initial investment $2,000 and an expense ratio of 1.50% compared to a category average of 1.41%.
Bridgeway Ultra-Small Company (BRUSX) seeks total return over the long term, focusing on capital growth. A majority of its net assets is invested in very small companies depending on the market cap. A maximum of 15% investment may be parked in securities issued by a foreign company. The small-cap mutual fund has a three year annualized return of 20.69%.
John Montgomery is the fund manager and he has managed this small-cap mutual fund since 1994.
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 VSCAX
Read the analyst report on TPLNX
Read the analyst report on CCVAX
Read the analyst report on JASCX
Read the analyst report on BRUSX
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