Top 5 Best Performing Small Cap Mutual Funds Year to Date

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.

The small-cap mutual fund has an expense ratio of 1.51% compared to a category average of 1.45%.

Oppenheimer Discovery A ( OPOCX - MF report ) seeks capital growth. The fund focuses on purchasing common stocks of growth oriented domestic companies. It concentrates on investing in small cap companies, firms with a market cap lower than $3 billion at the time of purchase. This small-cap mutual fund returned 2.82% over the last one year period.

The fund manager is Ronald J. Zibelli, Jr.and he has managed this small-cap mutual fund since 2006.

Munder Micro-Cap Equity A ( MMEAX - MF report ) invests the majority of its assets in equity securities of micro cap companies. These are defined as those firms whose market cap is lower than the largest company in the bottom 75% of the Russell 2000 Index. This small-cap mutual fund returned 8.02% over the last one year period.

As of June 2012, this small-cap mutual fund held 133 issues, with 2.56% of its total assets invested in Ssc Government Mm Gvxx.

Longleaf Partners Small-Cap ( LLSCX - MF report ) seeks long-term capital appreciation by investing in small-cap companies. Equity securities, including related convertible securities constitute the fund’s major investments. A maximum of 30% of its assets may be used to purchase foreign securities, including those issued from emerging markets. This small-cap mutual fund returned 2.65% over the last one year period.

The small-cap mutual fund has an expense ratio of 0.92% compared to a category average of 1.28%.

Legg Mason ClearBridge Small Cap Growth A (SASMX) invests a large share of its net assets in small cap companies and related instruments. The fund concentrates on investing in small domestic companies which focus on delivering growth. This small-cap mutual fund returned 7.79% over the last one year period.

The fund manager is Aram E. Green and he has managed this small-cap mutual fund since 2007.

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.