3 Buy-Ranked Small-Cap Blend Mutual Funds

By | September 1, 2015

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Small-cap blend funds are a type of equity mutual fund which hold in their portfolio a mix of value and growth stocks, where the market capitalization of the stocks is generally lower than $2 billion. Blend funds are also known as “hybrid funds”. Blend funds aim for value appreciation by capital gains. They owe their origin to a graphical representation of a fund’s equity style box. In addition to diversification, blend funds are great picks for investors looking for a mix of growth and value investment. Meanwhile, small-cap funds are a good choice for investors seeking diversification across different sectors and companies. Investors with a high risk appetite should invest in these funds. Below we will share with you 3 buy-rated small-cap blend mutual funds. Each has earned either a Zacks Mutual Fund Rank #1 (Strong Buy) or a Zacks Mutual Fund Rank #2 (Buy) , as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all small-cap blend mutual funds, investors can click here to see the complete list of funds. Fidelity Small Cap Stock Fund No Load (MUTF: FSLCX ) seeks capital appreciation over the long run. FSLCX uses a “blend” strategy to invest in small-cap companies having market capitalizations within the range of the Russell 2000 Index or the S&P SmallCap 600 Index. Factors including financial strength and economic condition are considered before investing in securities of companies throughout the globe. The Fidelity Small Cap Stock Fund has returned 6.5% over the past one year. Lionel T. Harris is the fund manager and has managed FSLCX since 2011. Lord Abbett Alpha Strategy Fund A (MUTF: ALFAX ) is a “fund of funds” that generally invests in mutual funds of Lord, Abbett & Co. LLC. ALFAX invests in value and growth stocks of companies located all over the world. The fund invests in companies having micro-, small- and mid-cap market capitalizations. The Lord Abbett Alpha Strategy A fund has returned 2.6% over the past one year. As of June 2015, ALFAX held 7 issues, with 20.18% of its total assets invested in the Lord Abbett Developing Growth I fund. TIAA-CREF Small-Cap Equity Retail Fund Adv (MUTF: TCSEX ) seeks favorable returns over the long term. TCSEX invests heavily in domestic small-cap companies having market capitalizations identical to those included in the Russell 2000 Index. The fund primarily invests in small-sized companies across different sectors. The TIAA-CREF Small-Cap Equity Retail fund has returned 4.9% over the past one year. TCSEX has an expense ratio of 0.78%, compared to a category average of 1.24%. Original Post Share this article with a colleague Scalper1 News

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