Small Capitalization Value
  • Small capitalization value no load mutual funds can be ideal investments for some investors, but these funds may not be right for others
  • A small capitalization fund can have varying risks and potential returns, and thorough fund comparisons are important to keep risks acceptable
  • The best no load funds will have low expenses, acceptable levels of risk, and a high quality rating

Small capitalization value no load mutual funds are generally funds which invest at least three fourths of the equity assets in companies that have a market capitalization which is not at least two hundred and fifty percent of the median market capitalization, dollar weighted, of the Standard & Poor Small Cap Index. These funds attempt to find long term capital growth with investments in undervalued companies compared to other indexes. Small cap companies are considered companies with a value of between three hundred million dollars and two billion dollars. One of the best no load funds in this area is the Homestead Small Company Stock Fund, which trades with the ticker symbol HSCSX. Homestead is the fund family, and the net assets for this fund are more than fifty million dollars. This small capitalization fund has four stars from Morningstar, and a yield of point eight seven percent. An investment of only five hundred dollars is needed for a minimum investment, and the total expense ratio for the fund is only one point two five percent. Fund manager Peter R. Morris has been in investment since 1974, making him very qualified to manage this fund.

Another small capitalization value fund that should be looked at when comparing no load mutual funds is the Intrepid Small Cap Fund, ticker symbol ICMAX. This is a small capitalization fund offered by Intrepid Funds, and it has the highest possible rating at five stars. Since the fund was started in 2005 it has shown great performance. The fund assets are a little more than seventy eight million dollars, and the yield if point one four percent. The fund has been managed by Eric Cinnamond since 2005, and he has had a place at Intrepid Funds since the year 1998. The minimum initial investment needed is twenty five hundred dollars, and capital appreciation over the long term is the goal of this small capitalization value fund. Pinnacle Value Fund is another one of the best no load funds, and this fund trades under the symbol PVFIX. Offered by Pinnacle, this is a five star fund according to Morningstar, and there are net assets worth over sixty three million dollars. The year to date return is a little more than three percent, and the yield is slightly more than one percent. This small capitalization value fund is managed by John E. Deysher and has been investing since 2003. There is a minimum investment of twenty five hundred dollars, so most investors can consider this fund without needing large capital amounts.

Five star Morningstar rated no load mutual funds are considered the best no load funds possible, and one of these is the Penn Avenue Event-Driven Inv Fund, with a ticker symbol of PAEDX. This is a small capitalization fund offered by Pennsylvania Avenue Funds, and the value of the net assets are almost two million dollars. Started in 2003, this fund has a high year to date return that is just under eight percent. There is a low minimum initial investment requirement, which is only twenty five hundred dollars, but this is one of the true no load funds which does charge a 12b-1 fee. It is point two three percent, which falls under the allowable point two five percent that no load funds can charge to market the fund. This does increase the fund expenses slightly, but the fee is used to bring new investors into the fund. There are many small capitalization value no load mutual funds that can be found, it is just a matter of doing the necessary research. It is important to remember that these funds may not be well diversified.