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Grab These 3 Small-Cap Value Mutual Funds for Fantastic Returns
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Small-cap funds are good choices for investors seeking diversification across different sectors and companies. Investors with a high-risk appetite should pick these funds. Small-cap funds generally invest in companies with a market cap lower than $2 billion. The companies, though smaller in size, offer growth potential, and their market capitalization may increase subsequently.
Meanwhile, value stocks tend to trade at a price lower than their fundamentals (i.e., earnings, book value, debt-equity). It is common for some investors to consider value funds for income or yield. However, not all value funds consist solely of companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield should make sure to check the mutual fund yield, which is dividend payments divided by the value of the mutual fund’s shares.
Invesco Small Cap Value fund invests most of its assets, along with borrowings, if any, in common stocks of small-capitalization companies, which, according to the fund’s advisors, are undervalued. VSCAX advisors also invest in derivatives, or other instruments with the same economic characteristics.
Invesco Small Cap Value fund has three-year annualized returns of 19%. As of the end of July 2025, VSCAX had 101 issues and invested 3.2% of its net assets in Coherent.
Columbia Small Cap Value Discovery Fund invests most of its assets, along with borrowings, if any, in equity securities of domestic and foreign companies that have market capitalizations in the range of the companies listed on the Russell 2000 Value Index at the time of purchase. CSMIX advisors generally invest in stocks that, according to them, are undervalued.
Columbia Small Cap Value Discovery Fund has a three-year annualized return of 12.7%. CSMIX has an expense ratio of 1.21%.
Sterling Capital Behavioral Small Cap Value Equity Fund invests most of its assets, along with borrowings, if any, in equity securities of small capitalization companies. SPSAX advisors consider small-cap companies as those with a market capitalization within the range of companies listed on the Russell 2000 Index at the time of purchase.
Sterling Capital Behavioral Small Cap Value Equity Fund has a three-year annualized return of 9.6%. Robert Weller has been the fund manager of SPSAX since June 2013.
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Grab These 3 Small-Cap Value Mutual Funds for Fantastic Returns
Small-cap funds are good choices for investors seeking diversification across different sectors and companies. Investors with a high-risk appetite should pick these funds. Small-cap funds generally invest in companies with a market cap lower than $2 billion. The companies, though smaller in size, offer growth potential, and their market capitalization may increase subsequently.
Meanwhile, value stocks tend to trade at a price lower than their fundamentals (i.e., earnings, book value, debt-equity). It is common for some investors to consider value funds for income or yield. However, not all value funds consist solely of companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield should make sure to check the mutual fund yield, which is dividend payments divided by the value of the mutual fund’s shares.
Below, we share with you three small-cap value mutual funds, namely, Invesco Small Cap Value (VSCAX - Free Report) , Columbia Small Cap Value Discovery Fund (CSMIX - Free Report) and Sterling Capital Behavioral Small Cap Value Equity Fund (SPSAX - Free Report) . Each has earned 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 funds.
Invesco Small Cap Value fund invests most of its assets, along with borrowings, if any, in common stocks of small-capitalization companies, which, according to the fund’s advisors, are undervalued. VSCAX advisors also invest in derivatives, or other instruments with the same economic characteristics.
Invesco Small Cap Value fund has three-year annualized returns of 19%. As of the end of July 2025, VSCAX had 101 issues and invested 3.2% of its net assets in Coherent.
Columbia Small Cap Value Discovery Fund invests most of its assets, along with borrowings, if any, in equity securities of domestic and foreign companies that have market capitalizations in the range of the companies listed on the Russell 2000 Value Index at the time of purchase. CSMIX advisors generally invest in stocks that, according to them, are undervalued.
Columbia Small Cap Value Discovery Fund has a three-year annualized return of 12.7%. CSMIX has an expense ratio of 1.21%.
Sterling Capital Behavioral Small Cap Value Equity Fund invests most of its assets, along with borrowings, if any, in equity securities of small capitalization companies. SPSAX advisors consider small-cap companies as those with a market capitalization within the range of companies listed on the Russell 2000 Index at the time of purchase.
Sterling Capital Behavioral Small Cap Value Equity Fund has a three-year annualized return of 9.6%. Robert Weller has been the fund manager of SPSAX since June 2013.
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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