Top 5 Small Cap Mutual Funds - Best of Funds
18 January 2012 - 8:16PM
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. 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, then click
here.
WesMark Small Company Growth (WMKSX) seeks capital
growth. The fund invests the majority of its assets in small-cap
companies. It focuses on acquiring equity securities which are
identical to those included in the Russell 2000 Index or the
S&P Small Cap 600 Index. The small-cap mutual fund returned
7.52% over the last one year period.
The small-cap mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.32% compared to a category average
of 1.48%.
Manning & Napier Small Cap A (MNSMX) invests heavily
in small cap companies. These firms must have market
capitalizations lower than $3 billion. The fund may invest in both
domestic and foreign stocks, including emerging market securities.
This small-cap mutual fund has a ten year annualized return of
3.74%.
The fund manager is Christian A. Andreach and he has managed
this small-cap mutual fund since 2002.
Virtus Small-Cap Sustainable Growth A (PSGAX) seeks
capital appreciation over the long term. The fund invests in small
cap companies while maintaining the risk profile of the S&P 500
which consists entirely of large cap companies. The small-cap
mutual fund returned 25.37% over the last one year period.
As of September 2011, this small-cap mutual fund held 28 issues,
with 5.49% of its total assets invested in BlackRock Liquidity
TempFund Instl.
Wells Fargo Intrinsic Small Cap Value (SCOVX) invests the
majority of its assets in equity securities of small-cap companies.
These firms must have market capitalizations within the range of
the Russell 2500 Index. This small-cap mutual fund has a three year
annualized return of 12.45%.
The small-cap mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 1.48% compared to a category average
of 1.36%.
Needham Small Cap Growth (NESGX) seeks capital growth
with lowest possible tax implications. The majority of the fund’s
assets is invested in domestic equity securities of companies with
market capitalizations of less than $2 billion or is within the
range of the Russell 2000 index, if greater. This small-cap mutual
fund has a five year annualized return of 3.14%.
The fund manager is Chris J. Retzler and he has managed this
small-cap mutual fund since 2008.
To view the Zacks Rank and past performance of all small-cap
mutual funds, then click here.
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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