If you're looking for a Small Cap Blend fund category, then a potential option is Conestoga Small Cap Investors (CCASX Quick QuoteCCASX - Free Report) . CCASX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

Objective

Zacks categorizes CCASX as Small Cap Blend, which is an area packed with options. Usually targeting stocks with market caps of less than $2 billion, a Small Cap Blend mutual fund lets investors diversify their funds among other kinds of small-cap equities. This can help reduce risk found in companies that have a lower stock market valuation.

History of Fund/Manager

Conestoga is based in Radnor, PA, and is the manager of CCASX. Conestoga Small Cap Investors made its debut in October of 2004, and since then, CCASX has accumulated about $487.84 million in assets, per the most up-to-date date available. Robert Mitchell is the fund's current manager and has held that role since October of 2004.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 4.24%, and it sits in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 6.08%, 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. The standard deviation of CCASX over the past three years is 18.52% compared to the category average of 16.03%. Over the past 5 years, the standard deviation of the fund is 19.72% compared to the category average of 17.36%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 1.03, so investors should note that it is hypothetically as volatile as the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. CCASX's 5-year performance has produced a negative alpha of -11.23, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, CCASX is a no load fund. It has an expense ratio of 1.10% compared to the category average of 1.06%. So, CCASX is actually more expensive than its peers from a cost perspective.

While the minimum initial investment for the product is $2,500, investors should also note that there is no minimum for each subsequent investment.

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

Bottom Line

Overall, even with its comparatively weak performance, average downside risk, and higher fees, Conestoga Small Cap Investors ( CCASX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.

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