There are plenty of choices in the Small Cap Value category, but where should you start your research? Well, one fund that might be worth investigating is Bridgeway Small Cap Value N (BRSVX Quick QuoteBRSVX - Free Report) . BRSVX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

The world of Small Cap Value mutual funds is an area filled with options, such as BRSVX. Small Cap Value funds invest in small companies with stock market valuation less than $2 billion. These funds offer more bang for an owner's buck, providing low P/E ratios, high dividend yields, and better-than-average P/S ratios.

History of Fund/Manager

BRSVX is a part of the Bridgeway family of funds, a company based out of Houston, TX. Since Bridgeway Small Cap Value N made its debut in January of 2004, BRSVX has garnered more than $345.31 million in assets. The fund is currently managed by a team of investment professionals.

Performance

Investors naturally seek funds with strong performance. BRSVX has a 5-year annualized total return of 19.54% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -0.16%, which places it in the bottom 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. BRSVX's standard deviation over the past three years is 24.3% compared to the category average of 22.15%. Looking at the past 5 years, the fund's standard deviation is 24.29% compared to the category average of 24.58%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.01, which means it is hypothetically as volatile as 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. With a positive alpha of 4.77, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Holdings

Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.

Currently, this mutual fund is holding 87.81% in stocks, with an average market capitalization of $2.26 billion. The fund has the heaviest exposure to the following market sectors:

• Finance
• Retail Trade

With turnover at about 56%, this fund is making fewer trades than comparable funds.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, BRSVX is a no load fund. It has an expense ratio of 0.88% compared to the category average of 1.15%. BRSVX is actually cheaper than its peers when you consider factors like cost.

This fund requires a minimum initial investment of $2,000, and each subsequent investment should be at least $100.

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

Bottom Line

Overall, Bridgeway Small Cap Value N ( BRSVX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Bridgeway Small Cap Value N ( BRSVX ) looks like a good potential choice for investors right now.

Your research on the Small Cap Value segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.