Top 5 Zacks #1 Ranked Small-Cap Mutual Funds - Best of Funds
May 07 2012 - 8:30AM
Zacks
Small-cap funds are the natural choice for investors willing to
take up short term positions and a certain degree of risk. 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 in the
future. Again, when markets are booming, small cap funds see high
levels of demand which leads to significant increases in their
prices. Investors looking for greater diversification would do well
to consider adding some 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.
American Century Small Cap Growth (ANOIX) invests the
majority of its assets in small cap firms. Companies invested in
must have market capitalizations within the range of the Russell
2000 Growth Index. The small-cap mutual fund has a three year
annualized return of 25.76%.
The small-cap mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 1.40% compared to a category average
of 1.46%.
T. Rowe Price Diversified Small Cap Growth (PRDSX) seeks
long-term capital growth. The majority of the fund’s assets are
invested in small companies which are included in the MSCI US
Small-Cap Growth Index. The fund’s top 25 holdings do not represent
a significant share of total assets. The small-cap mutual fund has
a three year annualized return of 32.26%.
Sudhir Nanda is the fund manager and he has managed this
small-cap mutual fund since 2006.
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 has a three year annualized
return of 34.07%.
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 has a three year annualized return of 30.02%.
As of March 2012, this small-cap mutual fund held 86 issues,
with 3.05% of its total assets invested in Sourcefire, Inc.
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 has a three year annualized return
of 26.58%.
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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