Investors with a high-risk appetite and an interest in growth and value investing may choose small-cap blend mutual funds to boost their portfolio. While blend funds, also known as hybrid funds, aim for value appreciation by capital gains, small-cap funds have higher growth prospects than their large and medium counterparts. Blend funds provide significant exposure to both growth and value stocks and owe their origin to a graphical representation of a funds equity style box.
Funds investing the majority of their assets in securities of companies with a market capitalization below $2 billion are generally considered small-cap mutual funds. Though funds investing in small-cap stocks are believed to have more exposure to market volatility than large or medium ones, they are also expected to provide diversification across sectors and companies. Moreover, small-cap companies are believed to be less affected by a global downturn, thanks to less international exposure.
Below we will share with you threetop-ranked small-cap blend mutual funds. Each has earned aZacks Mutual Fund Rank 1(Strong Buy) and is expected to outperform its peers in the future.
AB Small Cap Growth Portfolio Class A(QUASXFree Report) aims for capital growth over a long period. The fund invests the majority of its assets in equity securities of small-capitalization companies. The fund invests in a diversified portfolio of securities.
As of July 2019, QUASX held 112 issues with 1.79% of its assets invested in Chegg Inc.
JPMorgan Small Cap Core Fund Class R5(VSSCXFree Report) seeks long-term capital appreciation. The fund invests the majority of its assets in equity securities of small-capitalization companies. These companies are those that, at the time of purchase, have market capitalization equivalent to companies included on the Russel 2000 Index.
VSSCX has an expense ratio of 0.80% compared with the category average of 1.14%.
Disclosure: m contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific …
Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific securities do not constitute an offer to buy or sell securities. The past performance of a mutual fund, stock, or investment strategy cannot guarantee its future performance. For complete disclosure see information for Zacks portfolios and strategies are available at:
Zacks Investment Research is one of the most highly regarded firms in the investment industry. The guiding principle behind our work is that there must be a good reason for brokerage firms to …more
Zacks Investment Research is one of the most highly regarded firms in the investment industry. The guiding principle behind our work is that there must be a good reason for brokerage firms to spend billions of dollars a year on stock research. Obviously, these investment experts know something special thatmay be indicative of the future direction of stock prices. From day one, we were determined to unlock that secret knowledge and make it available to our clients to help them improve their investment results. In 1978 our founder, Len Zacks, made a breakthrough. Armed with his PhD in Mathematics from MIT, Len discovered that: Earnings estimate revisions are the most powerful force impacting stock prices From there he developed a quantitative model to harness the power of earnings estimate revisions – the direction, the degree of change, and surprises – along with other important variables to create the Zacks Rank. This unique and innovative rating system predicted the potential for future stock price increases. In fact, it proved itself as a system that clearly stated when to buy, sell, and hold stocks. And it was very unusual in that it provided an equal number of buys and sells. Unheard of in the days when all Wall Street could say was Buy. Zacks Rank is completely mathematical. Its cold. Its objective. The Zacks Rank does not care what the hype on the street says. Or how many times the CEO appeared on TV. Or how this company could some day, maybe, if everything works perfectly, and the stars are aligned become the next Microsoft. The Zack Rank only cares about the math and whether the math predicts that the price will rise. Needless to say, leading firms in the investment industry wanted to use this rating tool as part of their decision making process. And Zacks Investment Research became one of Wall Streets most respected firms. Today, Wall Street continues to use Zacks research including the Zacks Rank and Zacks Equity Research, which combines the best of quantitative and qualitative analysis. This same professional strength research is now available to individual investors on our web site, , and through our other services.See the proven power of Zacks research for yourself free and get four free stock picks every day.Learn more now.