Any investors hoping to find a Small Cap Value fund could think about starting with Aegis Value Fund (AVALX Quick QuoteAVALX - Free Report) . AVALX bears a Zacks Mutual Fund Rank of 3 (Hold), 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

Aegis is based in McLean, VA, and is the manager of AVALX. Aegis Value Fund made its debut in June of 2000, and since then, AVALX has accumulated about $862.91 million in assets, per the most up-to-date date available. The fund is currently managed by Scott L. Barbee who has been in charge of the fund since June of 2000.

Performance

Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 28.84%, 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 27.81%, 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. Over the past three years, AVALX's standard deviation comes in at 18.51%, compared to the category average of 20.39%. The standard deviation of the fund over the past 5 years is 22.11% compared to the category average of 21.12%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.85, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a positive alpha of 13.35, 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 1.38% compared to the category average of 1.15%. From a cost perspective, AVALX is actually more expensive than its peers.

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 consideration. Returns would be less if those were included.

Bottom Line

Overall, even with its comparatively strong performance, average downside risk, and higher fees, Aegis Value Fund ( AVALX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.