On the lookout for a Small Cap Value fund? Starting with Aegis Value Fund (AVALX Quick QuoteAVALX - Free Report) should not be a possibility at this time. AVALX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

Objective

AVALX is one of many Small Cap Value funds to choose from. Small Cap Value mutual funds typically invest in companies with market caps under $2 billion. These funds represent value because they offer more bang for an owner's buck, often demonstrated by lower P/E Ratios, high dividend yields, and better-than-average price-to-sales ratios.

History of Fund/Manager

AVALX finds itself in the Aegis family, based out of McLean, VA. Since Aegis Value Fund made its debut in June of 2000, AVALX has garnered more than $354.92 million in assets. Scott L. Barbee is the fund's current manager and has held that role since June of 2000.

Performance

Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 22.48%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 13.51%, which places it in the top third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 21.16%, the standard deviation of AVALX over the past three years is 22.91%. Over the past 5 years, the standard deviation of the fund is 29.58% compared to the category average of 24.49%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.21, so it is likely going to be more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. AVALX has generated a positive alpha over the past five years of 6.3, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, AVALX is a no load fund. It has an expense ratio of 1.43% compared to the category average of 1.16%. So, AVALX is actually more expensive than its peers from a cost perspective.

While the minimum initial investment for the product is $10,000, investors should also note that each subsequent investment needs to be at least $250.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Aegis Value Fund ( AVALX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, this fund looks like a poor potential choice for investors right now.

For additional information on this product, or to compare it to other mutual funds in the Small Cap Value, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.