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3 Small-Cap Value Mutual Funds for Amazing Returns
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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 trading at a discount. Investors with a high-risk appetite tend to buy these funds. Small-cap funds generally invest in companies having a market cap of less than $2 billion. The companies, smaller in size, have growth potential and are likely to see an increase in market capitalization.
Value stocks are those that 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 comprise only those companies that primarily use their earnings to pay out dividends. Investors interested in picking value funds for yield should check the mutual fund yield, which is the total dividend payout divided by the value of the mutual fund’s shares.
FPA Queens Road Small Cap Value Inv fund seeks to achieve its objective by mainly investing in equity securities, such as common, preferred and convertible stocks of small-cap U.S. companies. QRSVX advisors also invest the majority of their net assets in small-cap equities.
FPA Queens Road Small Cap Value Inv fund has a three-year annualized return of 13%. Steve Scruggs has been one of the fund managers of QRSVX since 2002.
PGIM Quant Solutions Small-Cap Val fund seeks above-average capital appreciation. TASVX invests its assets in common stocks of companies with a total market capitalization of less than $2.5 billion (measured at the time of purchase).
PGIM Quant Solutions Small-Cap Val fund has three-year annualized returns of 8.8%. As of July 2025, TASVX held 395 issues, with 1% of its assets invested in Jackson Financial Inc.
Franklin Small Cap Value Fund seeks long-term total return. FRVLX invests its net assets in investments of small-capitalization companies.
Franklin Small Cap Value Fund has three-year annualized returns of 9.2%. FRVLX has an expense ratio of 0.95%.
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3 Small-Cap Value Mutual Funds for Amazing Returns
A small-cap value fund is a good choice for investors seeking diversification across sectors and companies, and focusing on gaining exposure to stocks trading at a discount. Investors with a high-risk appetite tend to buy these funds. Small-cap funds generally invest in companies having a market cap of less than $2 billion. The companies, smaller in size, have growth potential and are likely to see an increase in market capitalization.
Value stocks are those that 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 comprise only those companies that primarily use their earnings to pay out dividends. Investors interested in picking value funds for yield should check the mutual fund yield, which is the total dividend payout divided by the value of the mutual fund’s shares.
Below, we share with you three top-ranked small-cap value mutual funds, viz., FPA Queens Road Small Cap Value Inv (QRSVX - Free Report) , PGIM Quant Solutions Small-Cap Val (TASVX - Free Report) and Franklin Small Cap Value Fund (FRVLX - Free Report) . Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of Small Cap Value mutual funds.
FPA Queens Road Small Cap Value Inv fund seeks to achieve its objective by mainly investing in equity securities, such as common, preferred and convertible stocks of small-cap U.S. companies. QRSVX advisors also invest the majority of their net assets in small-cap equities.
FPA Queens Road Small Cap Value Inv fund has a three-year annualized return of 13%. Steve Scruggs has been one of the fund managers of QRSVX since 2002.
PGIM Quant Solutions Small-Cap Val fund seeks above-average capital appreciation. TASVX invests its assets in common stocks of companies with a total market capitalization of less than $2.5 billion (measured at the time of purchase).
PGIM Quant Solutions Small-Cap Val fund has three-year annualized returns of 8.8%. As of July 2025, TASVX held 395 issues, with 1% of its assets invested in Jackson Financial Inc.
Franklin Small Cap Value Fund seeks long-term total return. FRVLX invests its net assets in investments of small-capitalization companies.
Franklin Small Cap Value Fund has three-year annualized returns of 9.2%. FRVLX has an expense ratio of 0.95%.
To view the Zacks Rank and the past performance of all small-cap value mutual funds, investors can click here to see the complete list of small cap value mutual funds.
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