Small Capitalization
  • Small capitalization core no load mutual funds can be perfect for some investors but wrong for others
  • No load mutual funds lower investment costs but require research and effort
  • A small capitalization fund may have various holdings, and each fund is different

Small capitalization core no load mutual funds are mutual funds which have a wide variety of investments, and these funds invest in companies that have a value of up to two billion dollars. No load mutual funds are funds which do not charge load fees. These fees are paid as a commission to the broker, in exchange for investment advice on which funds to use. With no load funds there is no advice, but also no fees which average between five and eight percent on the amount invested or withdrawn. This amount can add up to a substantial cost every year, and most investors have the ability to research, compare, and choose the right small capitalization core mutual funds without any professional help. One small capitalization fund which many experts consider one of the best no load funds is the Royce Select II Invt Fund, with the ticker symbol RSFDX. Royce offers this fund, and it is rated with four stars from Morningstar. This fund is smaller, with net assets that are only worth around two million dollars, but the year to date return is high at twenty point nine four percent. The yield is also high at point nine five percent. The fund is managed by James Harvey, and the minimum amount needed to invest is fifty thousand dollars. The expense ratio for this fund is very small at point two four percent.

Another one of the no load mutual funds concerning small capitalization core funds is JHancock Small Cap Intrinsic Value I Fund, ticker symbol JHIIX. This fund has assets that are valued at a little more than twelve million dollars, but the rating is only two stars so caution should be used until a thorough fund evaluation has been made to determine if this fund fits the goals and strategies, and stays within the acceptable levels of risk. Offered by the John Hancock family of funds, the JHancock Small Cap Intrinsic Value I Fund has a two hundred and fifty thousand dollar minimum investment amount set. This small capitalization fund is managed by Timothy M. Malloy, and has the goal of long term capital appreciation. The fund operating expense ratio is one point zero six percent, and there are no marketing fees involved. Parnassus Small-Cap Fund is considered to be another one of the best no load funds. This small capitalization core fund trades with the symbol PARSX, and it is from the Parnassus family of funds. The investment required is only two thousand dollars, making this fund very accessible, and it has the highest possible Morningstar rating at five stars. This fund has a year to date return of over eighteen percent, an operating expense ratio of one point two percent, and net assets of close to fifty million dollars.

Dreyfus Small Company Value Fund, which uses the ticker symbol DSCVX, is one small capitalization fund which may be right for some investors, and it is rated with three stars from Morningstar. This fund was first started in 1993, and it is currently managed by David A Daglio. The fund net assets are close to ninety two million dollars, the yield is point nine four percent, and the year to date return is around seventeen and a half percent. Twenty five hundred dollars is needed to make an initial investment in the fund, and there are no 12b-1 marketing fees involved. Small capitalization core no load mutual funds have many benefits to offer, but they are not right for everyone. It is crucial to do all of the necessary research and comparisons to make sure that the funds invested in are the best possible ones available.