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4 Strong-Buy Small-Cap Value Mutual Funds

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A small-cap value fund is a good choice for investors seeking diversification across sectors and companies, and focusing on gaining exposure to stocks that are trading at discounts. Investors with a high risk appetite should invest in these funds. Small-cap funds generally invest in companies having market cap lower than $2 billion. The companies, smaller in size, offer growth potential and their market capitalization may increase subsequently.
 
Meanwhile, value stocks are those that tend to trade at a price lower than their fundamentals (i.e. earnings, book value, debt-equity). It is a common practice to invest in value funds for income or yield. However, not all value funds solely comprise companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield, should be sure to check the mutual fund yield, which is the dividend payout divided by the value of the mutual fund’s shares.
 
Below we share with you 4 top-rated, small-cap value mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all small-cap value mutual funds, investors can click here to see the complete list of small-cap value funds.
 
CornerCap Small Cap Value (CSCVX - Free Report) seeks capital growth over the long run. CSCVX invests the lion’s share of its assets in small cap companies located in the US. CSCVX defines firms with market capitalization below $3 billion as small cap. The CornerCap Small Cap Value fund returned 9.4% over the past one year.
 
As of September 2015, CSCVX held 221 issues with 0.69% of its assets invested in Fidelity Southern Corp.
 
Perkins Small Cap Value A (JDSAX - Free Report) invests a large chunk of its assets in common stocks of undervalued small-cap companies. JDSAX invests in securities of companies with market capitalization similar to those listed in the Russell 2000 Value Index. JDSAX may invest a maximum of 20% of its assets in cash or equivalents. The Perkins Small Cap Value A fund returned 5.7% over the past one year.
 
JDSAX has an expense ratio of 1.03% as compared to the category average of 1.23%.
 
Northern Small Cap Value (NOSGX - Free Report) seeks long-term growth of capital. NOSGX invests a major portion of its assets in equity securities of companies having market capitalization within the universe of the Russell 2000 Value Index. NOSGX may focus on a particular sector including financial services. NOSGX may invest in companies that may not provide any dividend. The Northern Small Cap Value fund returned 5.6% over the past one year.
 
Robert H. Bergson is the fund manager of NOSGX since 2001.
 
Queens Road Small Cap Value (QRSVX - Free Report) invests generally in securities of small-cap companies located in the U.S. QRSVX seeks to provide capital appreciation by investing the majority of its assets in equity securities of companies. The Queens Road Small Cap Value fund returned 6.3% over the past one year.
 
QRSVX has an expense ratio of 1.24% as compared to the category average of 1.23%.
 
To view the Zacks Rank and past performance of all small-cap value 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 https://www.zacks.com/funds.


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