Top 5 Zacks #1 Ranked Small-Cap Mutual Funds - Best of Funds
19 June 2012 - 1:47AM
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,
investors can click here to see the complete list of funds.
Pioneer Oak Ridge Small Cap Growth A (ORIGX) seeks
capital growth. The fund invests a large share of its assets in
companies with small market capitalizations. A maximum of 20% of
its total assets may be utilized to purchase foreign equity and
debt securities. The small-cap mutual fund has a three year
annualized return of 20%.
The small-cap mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.40% compared to a category average
of 1.45%.
Needham Small Cap Growth (NESGX) invests the majority of
its assets in domestic equity securities of companies traded on a
domestic security exchanges. The fund focuses on acquiring stocks
which are attractively priced relative to their underlying value.
The small-cap mutual fund has a three year annualized return of
17.28%.
As of August 2011, this small-cap mutual fund held 75 issues,
with 2.40% of its total assets invested in Plantronics.
JHancock Small Cap Equity A (SPVAX) seeks capital growth.
The fund invests a large proportion of its assets in small
companies. Not more than 5% of its assets may be utilized to
purchase a single security. A maximum of 10% of its assets may be
invested in cash or cash equivalents. This small-cap mutual fund
has a three year annualized return of 23.54%.
Robert P. Shea is the fund manager and he has managed this
small-cap mutual fund since 2009.
AllianceBernstein Small Cap Growth A (QUASX) invests
heavily in equity securities of small-cap companies with market
capitalizations of less than $10 million. At any given point in
time the fund invests in between 95 to 125 companies. This
small-cap mutual fund has a three year annualized return of
29.07%.
The small-cap mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 1.43% compared to a category average
of 1.45%.
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. This small-cap
mutual fund has a three year annualized return of 22.17%.
Todd A. Beiley is the fund manager 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, 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
(NESGX): ETF Research Reports
(ORIGX): ETF Research Reports
(PSGAX): ETF Research Reports
(QUASX): ETF Research Reports
(SPVAX): ETF Research Reports
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