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Top 5 Small Cap Funds
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ShareInvestors looking to mop up handsome gains over the 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 businesses. This reassures shareholders of better performance over the long term.
Below we will share with you 5 top rated small-cap funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all small-cap funds, then click here.
Turner Small Cap Growth (TSCEX) seeks capital growth. The majority of its assets are invested in equity securities of domestic small-cap companies. It focuses on acquiring common stocks and investing in companies which have widely diversified operations. It tries to match sector concentrations as represented by the Russell 2000 Growth index. It is a no-load fund.
This small-cap fund has returned 49.07% over the last one year period.
JPMorgan Small Cap Equity A (VSEAX) invests at least 80% of its assets in small-cap companies. The fund invests in equity securities, primarily in common stocks. The companies it invests in must be those with market capitalization similar to companies included in the Russell 2000 index. The fund has a five year annualized return of 9.86%.
The small-cap fund has a minimum initial investment of $1,000 and an expense ratio of 1.30% compared to a category average of 1.60%.
Sit Small Cap Growth (SSMGX) seeks capital appreciation over the long term. The majority of its assets are invested in companies with market capitalizations less than $3 billion or similar to those included in the Russell 2000 index. It focuses on acquiring domestic companies with the ability to grow appreciably over the long term. The small-cap fund returned 43.7% over the last one year period and has a five year annualized return of 7.29%.
Robert W. Sit is the fund manager and has managed this small-cap fund since 1997.
Lord Abbett Small-Cap Value A (LRSCX) invests heavily in small-cap companies. The fund purchases common and convertible preferred stocks, convertible securities and other related instruments. The companies it invests in must have market capitalizations within the range of the Russell 2000 index. This small-cap fund has a ten year annualized return of 12.88%.
As of March 2010, this small-cap fund held 113 issues, with 2.45% of its total assets invested in Hexcel Corporation.
AIM Small Cap Equity A (SMEAX) seeks long-term capital appreciation by investing in small-cap companies. The majority of the fund’s assets are invested in small companies within the market cap of the Russell 2000 index. It focuses on purchasing equity securities as well as convertible securities. The fund returned 40.52% over the last one year period
The fund manager is Juan S. Hartsfield and he has managed this small-cap fund since 2006.
To view the Zacks Rank and past performance of all small-cap 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/mutualfund/
Read the full analyst report on TSCEX
Read the full analyst report on VSEAX
Read the full analyst report on SSMGX
Read the full analyst report on LRSCX. SMEAX
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| Market Summary | May 26, 2012 05:43 am ET |
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