Back to top

Image: Bigstock

3 Royce Mutual Funds for Solid Returns

Read MoreHide Full Article

Royce Investment Partners is a New York–based asset manager that has managed portfolios in this segment since 1972 and oversees $10.9 billion in assets. The investment strategy of Royce mutual funds involves active management focusing on U.S. small-cap stocks that exhibit higher market volatility and wider return variations than large-cap stocks. The evaluation process requires analysis of four essential elements, namely strategy consistency, asset size, small-cap risk exposure and performance. These performance indicators enable the evaluation of small-cap mutual fund investments relative to other funds in this investment class.

We have chosen three Royce mutual funds — Royce Micro-Cap Invmt (RYOTX - Free Report) , Royce Small-Cap Total Return Invmt (RYTRX - Free Report) and Royce Smid-Cap Total Return Service (RYDVX - Free Report) — that investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.

Royce Micro-Cap Invmt fund seeks long-term growth of capital. RYOTX fund seeks long-term growth of capital. The fund invests its assets primarily in a broad portfolio of equity securities issued by micro-cap companies. 

James P. Stoeffel has been the lead manager of RYOTX since May 1, 2015. Most of the fund’s holdings were in companies like Newpark Resources Inc (1.2%), CECO Environmental Corp. (1.2%) and Sprott Inc. (1.2%) as of Sept.30, 2025.

RYOTX’s 3-year and 5-year annualized returns are 13.1% and 10.8%, respectively. Its net expense ratio is 1.24%. RYOTX has a Zacks Mutual Fund Rank #2.  

To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.

Royce Small-Cap Total Return Invmt fund seeks both long-term growth of capital and current income. RYTRX invests its net assets in equity securities.

Miles Lewis has been the lead manager of RYTRX since May 18, 2020. Most of the fund's holdings were in companies like Academy Sports and Outdoors, Inc. (2.7%), Assured Guaranty Ltd. (2.3%) and Advance Auto Parts, Inc. (2.2%) as of Sept. 30, 2025.

RYTRX’s 3-year and 5-year annualized returns are 9.4% and 10%, respectively. Its net expense ratio is 1.14%. RYTRX has a Zacks Mutual Fund Rank #2. 

Royce Smid-Cap Total Return Service invests in dividend-paying equities of small- to mid-cap companies trading below their estimated worth.

Joseph Hintz has been the lead manager of RYDVX since Sept. 30, 2024. Most of the fund’s holdings were in companies like FTAI Aviation Ltd. (4.4%), Academy Sports and Outdoors, Inc. (4.2%) and Assured Guaranty Ltd. (3.6%) as of Sept. 30, 2025.

RYDVX’s 3-year and 5-year annualized returns are 13.1% and 10.6%, respectively. Its net expense ratio is 1.34%. RYDVX has a Zacks Mutual Fund Rank #2. 

Want key mutual fund info delivered straight to your inbox?

Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top performing mutual funds, each week. Get it free >>

 

 

 

 

 

 

 


 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Royce SMidCap Total Return Svc (RYDVX) - free report >>

Royce Micro-Cap Inv (RYOTX) - free report >>

Royce Total Return Investment (RYTRX) - free report >>

Published in