Small Capitalization
  • Small capitalization growth no load mutual funds have both benefits and risks, and these funds are not for all investors.
  • The best no load funds will fit the investment goals, strategies, and acceptable risks of the investor, and will eliminate or minimize the marketing fees charged.
  • A small capitalization fund may not be diverse, so it is important to check the holdings of each fund when comparing them, to ensure unacceptable risks are not taken and portfolio diversity is maintained.

Small capitalization growth no load mutual funds can be a great investment for some investors, but these funds do carry varying degrees of risk. The investments made by capitalization growth funds are with companies which are expected to have long term earnings that exceed the index used, in this case the S&P Small Cap 600 Index. For investors who are looking for a small capitalization fund to invest in there are many to choose from. Remember though that every investment carries unique risks and benefits, and no load mutual funds do not offer professional investment advice. This means that doing the necessary research, evaluations, and fund comparisons is very important. The upside of no load funds is that load fees are normally unnecessary, and can add up to a significant amount of money. This is money that is invested and seen by higher returns and investment values, instead of being paid as a sales commission to a broker. Small capitalization growth funds invest in companies that are called small, but these companies have a value between three hundred million to two billion dollars.

One of the best no load mutual funds when it comes to small capitalization growth funds is the Wells Fargo Advantage Small Cap Growth I Fund, which has the trading symbol WFSIX. This fund has a five star Morningstar rating, which is the highest possible, and it is considered an institutional small capitalization growth fund. The investment requirements are quite high, at five million dollars, because this fund is aimed towards institutions and large entity investors. The total expense ratio for this fund is small, at point nine zero percent, which offsets the higher investment amount needed. Wells Fargo Advantage offers this fund. A small capitalization fund with a lower initial investment requirement is the William Blair Small Cap Growth I Fund, ticker symbol WBSIX, is offered by the William Blair family of funds. This fund has three stars from Morningstar, and net assets that are close to two hundred million dollars. This small capitalization fund was started in 1999, and it has a year to date return of twenty four point five percent. Managed by Karl W. Brewer, this small capitalization fund has a high initial investment requirement of half a million dollars. At least eighty percent of the investments and holdings for this fund are in small cap companies.

Another one of the best no load funds concerning small capitalization growth is the Artio U.S. Microcap I Fund, with the ticker symbol JMCIX. This fund is offered by Artio Global, and the goal is capital growth over the long term. This capitalization growth fund has almost two million in net assets, and it is managed by Samuel A. Dedio. Started in 2006, this specific small capitalization fund requires a minimum investment of one million dollars, putting it out of the reach of most individual investors. The total expense ratio for this fund is somewhat high for an institutional fund, at one point five zero percent, but it is a true no load fund and it has no marketing fees. River Oak Discovery is another small capitalization growth fund that many investors consider one of the best no load funds for small cap companies. This fund trades with the symbol RIVSX, has net assets worth almost five million dollars, and has a four star Morningstar rating. Robert Stimpson manages this capitalization growth fund, and the initial investment requirement is small at only two thousand dollars. There are many small capitalization growth no load mutual funds that can be invested in, and finding the right one is just a matter of doing the research and finding funds that fit within acceptable risk levels and investment strategies.