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4 Strong Buy Small-Cap Blend Mutual Funds for Great Returns
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Investors with a high risk appetite and an interest in growth and value investing may choose small-cap blend mutual funds to boost their portfolio. While blend funds, also known as "hybrid funds," aim for value appreciation by capital gains, small-cap funds have higher growth prospects than their large and medium counterparts. Blend funds provide significant exposure to both growth and value stocks and owe their origin to a graphical representation of a fund's equity style box.
Funds investing the majority of their assets in securities of companies with market capitalization lower than $2 billion are generally considered small-cap mutual funds. Though funds investing in small-cap stocks are believed to have more exposure to market volatility than large or medium ones, they are also expected to provide diversification across sectors and companies. Moreover, small-cap companies are believed to be less affected by a global downturn, thanks to less international exposure.
Fidelity Stock Selector Small Cap (FDSCX - Free Report) seeks growth of capital. FDSCX invests a bulk of its assets in securities issued by small-cap companies, which fall within the range of the Russell 2000 Index or the S&P SmallCap 600 Index. The fund’s assets are allocated across various sectors including consumer discretionary, consumer staples, health care, energy, financials, information technology, industrials, materials, real estate and telecom services. Fidelity Stock Selector Small Cap returned 1.3% in the last three-month period.
FDSCX has an expense ratio of 0.88% compared with the category average of 1.21%.
PIMCO StocksPLUS Small D invests its assets in derivatives which fall within the range of the Russell 2000 Index. These derivatives are backed by portfolio of Fixed Income Instruments including bonds and debt securities, which are managed by Pacific Investment Management Company LLC. PCKDX seeks relatively better returns than that of the Russell 2000 Index. PIMCO StocksPLUS Small D returned 3.2% in the last three-month period.
Sudi Mariappa is one of the fund managers of PCKDX since 2015.
Principal SmallCap S&P 600 Index J (PSSJX - Free Report) seeks capital appreciation for the long term. PSSJX invests the lion’s share of its assets in equities of companies which are included on the S&P SmallCap 600 Index. The market capitalization range of these companies from the index was between $51.6 million and $4.5 billion, as of December 31, 2016. Principal SmallCap S&P 600 Index J returned 1.2% in the last three-month period.
As of March 2017, PSSJX held 605 issues, with 3.30% of its assets invested inRussell 2000 Mini Jun17.
PIMCO StocksPLUS Small A (PCKAX - Free Report) maintains invests in fixed income securities related to the Russell 2000 Index including bonds and other derivatives to derive higher returns than the index. PCKAX invests in securities from public as well as private sectors issued worldwide. The fund focuses on investing in those fixed income instruments, which are actively managed by PIMCO. PIMCO StocksPLUS A returned 3.2% in the last three-month period.
PCKAX has an expense ratio of 1.09% compared with the category average of 1.21%.
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4 Strong Buy Small-Cap Blend Mutual Funds for Great Returns
Investors with a high risk appetite and an interest in growth and value investing may choose small-cap blend mutual funds to boost their portfolio. While blend funds, also known as "hybrid funds," aim for value appreciation by capital gains, small-cap funds have higher growth prospects than their large and medium counterparts. Blend funds provide significant exposure to both growth and value stocks and owe their origin to a graphical representation of a fund's equity style box.
Funds investing the majority of their assets in securities of companies with market capitalization lower than $2 billion are generally considered small-cap mutual funds. Though funds investing in small-cap stocks are believed to have more exposure to market volatility than large or medium ones, they are also expected to provide diversification across sectors and companies. Moreover, small-cap companies are believed to be less affected by a global downturn, thanks to less international exposure.
Below we will share with you four top-ranked small-cap blend mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Fidelity Stock Selector Small Cap (FDSCX - Free Report) seeks growth of capital. FDSCX invests a bulk of its assets in securities issued by small-cap companies, which fall within the range of the Russell 2000 Index or the S&P SmallCap 600 Index. The fund’s assets are allocated across various sectors including consumer discretionary, consumer staples, health care, energy, financials, information technology, industrials, materials, real estate and telecom services. Fidelity Stock Selector Small Cap returned 1.3% in the last three-month period.
FDSCX has an expense ratio of 0.88% compared with the category average of 1.21%.
PIMCO StocksPLUS Small D invests its assets in derivatives which fall within the range of the Russell 2000 Index. These derivatives are backed by portfolio of Fixed Income Instruments including bonds and debt securities, which are managed by Pacific Investment Management Company LLC. PCKDX seeks relatively better returns than that of the Russell 2000 Index. PIMCO StocksPLUS Small D returned 3.2% in the last three-month period.
Sudi Mariappa is one of the fund managers of PCKDX since 2015.
Principal SmallCap S&P 600 Index J (PSSJX - Free Report) seeks capital appreciation for the long term. PSSJX invests the lion’s share of its assets in equities of companies which are included on the S&P SmallCap 600 Index. The market capitalization range of these companies from the index was between $51.6 million and $4.5 billion, as of December 31, 2016. Principal SmallCap S&P 600 Index J returned 1.2% in the last three-month period.
As of March 2017, PSSJX held 605 issues, with 3.30% of its assets invested in Russell 2000 Mini Jun17.
PIMCO StocksPLUS Small A (PCKAX - Free Report) maintains invests in fixed income securities related to the Russell 2000 Index including bonds and other derivatives to derive higher returns than the index. PCKAX invests in securities from public as well as private sectors issued worldwide. The fund focuses on investing in those fixed income instruments, which are actively managed by PIMCO. PIMCO StocksPLUS A returned 3.2% in the last three-month period.
PCKAX has an expense ratio of 1.09% compared with the category average of 1.21%.
To view the Zacks Rank and past performance of all small-cap blend mutual funds, investors can click here to see the complete list of funds.
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