Top 5 Zacks#1 Ranked Small-Cap Mutual Funds - Best of Funds
28 March 2012 - 1:59AM
Zacks
Small-cap mutual funds are the preferred choice of investors
willing to take a certain amount of risk while holding short term
positions. In addition, smaller firms plough back a large portion
of their profits back into their business on a regular basis. This
assures shareholders of better performance and higher profits. When
markets are booming, small cap mutual funds see high levels of
demand which leads to significant increases in their prices.
Investors seeking greater diversification would do well by adding
small cap flavor to their portfolios.
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.
Virtus Small-Cap Sustainable Growth A (PSGAX)
seeks capital growth over the long term by investing in small
cap stocks whose market capitalization at the time of initial
purchase is identical to stocks which are part of the Russell 2000A
Growth Index. The small-cap mutual fund returned 19.62% over the
last one year period.
The small-cap mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 1.67% compared to a category average
of 1.47%.
DWS Small Cap Growth A (SSDAX) invests the
majority of its assets in securities with equity features identical
to US small cap companies. Not more than 20% of its assets may be
utilized to purchase foreign and large cap stocks. The small-cap
mutual fund returned 11.87% over the last one year period.
Rafaelina Lee is the fund manager and he has managed this
small-cap mutual fund since 2008.
Pacific Advisors Small Cap Value A (PASMX)
seeks capital appreciation. A large share of the fund’s assets is
invested in stocks of companies whose market capitalization is less
than $2 billion. It also invests heavily in stocks with market
capitalization of less than $500 million, known as micro-cap
stocks. The small-cap mutual fund returned 14.35% over the last one
year period.
The small-cap mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 2.88% compared to a category average
of 1.35%.
Legg Mason ClearBridge Small Cap Growth A
(SASMX) invests the majority of its net assets in small cap
companies and related investments. The fund emphasizes on small US
companies with a growth oriented investment style. The small-cap
mutual fund returned 10.09% over the last one year period.
As of December 2011, this small-cap mutual fund held 85 issues,
with 3.28% of its total assets invested in Taleo Corporation A.
Federated MDT Small Cap Growth A (QASGX) seeks
long term capital growth. The fund invests a large share of its
assets in equity securities of companies whose market
capitalization is identical to securities included in the Russell
2000 A Growth Index. The small-cap mutual fund returned 5.61% over
the last one year period.
Frederick L. Konopka 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
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