Top 10 Small Cap Mutual Funds

Small Cap Mutual Funds

Small cap mutual funds are investor pools that specialize in stocks of companies with market capitalization of $2 billion and under. The mere definition of “small cap” is rather loose and may vary from one financial institution to another and change with time.

Small cap companies are very attractive for mutual fund investors because of their potential to grow into a larger cap group and provide its investors with big returns over a period of time. However, investing in small cap mutual funds is relatively riskier than, say, putting your money into mid or large cap mutual funds. Smaller companies are hit the hardest in tough economic times but can really surprise you by impressive returns in stable market environment.

Investing in small cap mutual funds takes the guesswork out of picking individual small cap companies and entrusting the decision in the hands of stock market professionals. Many of them agree that small cap mutual funds should comprise just a portion of your overall diversified portfolio to decrease investment risk in case of defaults.

Please see below for the list of Top 10 Small Cap Mutual Funds that are worth considering for your portfolio.

1. T Rowe Price Diversified Small Cap Growth (PRDSX)
2. Pacific Advisors Small Cap A (Nasdaq: PASMX)
3. Buffalo Small Cap (BUFSX)
4. Black Rock Small Cap Growth Equity A (CSGEX)
5. Alliance Bernstein Small Cap Growth A (QUASX)
6. Heartland Value Plus (HRVIX)
7. Evergreen Special Values (ESPAX)
8. Natixis Vaughan Nelson Small Cap Value (NEFJX)
9. Calvert New Vision Small Cap (CNVAX) is tagged as one of socially responsible mutual funds that seek out companies with highly ethical business practices, attention to product safety and overall environmental impact.
10. Parnassus is also a socially responsible no load mutual fund that will not consider investing in companies involved in sinful business productions like alcohol, tobacco, adult entertainment, gambling and nuclear energy.

By including some small cap mutual funds in your portfolio, you can create a nice investment package that can withstand multiple economic environments and bet on companies with strong growth potential.
The information on Top 10 Mid Cap Mutual Funds could be obtained by reading our other article by this topic.