Grab These 3 Small-Cap Value Mutual Funds for Fantastic Returns

Small-cap funds are good choices for investors seeking diversification across different sectors and companies. Investors with a high-risk appetite should pick these funds. Small-cap funds generally invest in companies with a market cap lower than $2 billion. The companies, though smaller in size, offer growth potential, and their market capitalization may increase subsequently.Meanwhile, value stocks tend to trade at a price lower than their fundamentals (i.e., earnings, book value, debt-equity). It is common for some investors to consider value funds for income or yield. However, not all value funds consist solely of companies that primarily use their earnings to pay dividends. Investors interested in choosing value funds for yield should make sure to check the mutual fund yield, which is dividend payments divided by the value of the mutual fund’s shares.Below, we share with you three small-cap value mutual funds, namely, Invesco Small Cap Value VSCAX, Columbia Small Cap Value Discovery Fund CSMIX and Sterling Capital Behavioral Small Cap Value Equity Fund SPSAX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.Invesco Small Cap Value fund invests most of its assets, along with borrowings, if any, in common stocks of small-capitalization companies, which, according to the fund’s advisors, are undervalued. VSCAX advisors also invest in derivatives, or other instruments with the same economic characteristics.Invesco Small Cap Value fund has three-year annualized returns of 19%. As of the end of July 2025, VSCAX had 101 issues and invested 3.2% of its net assets in Coherent.Columbia Small Cap Value Discovery Fund invests most of its assets, along with borrowings, if any, in equity securities of domestic and foreign companies that have market capitalizations in the range of the companies listed on the Russell 2000 Value Index at the time of purchase. CSMIX advisors generally invest in stocks that, according to them, are undervalued.Columbia Small Cap Value Discovery Fund has a three-year annualized return of 12.7%. CSMIX has an expense ratio of 1.21%.Sterling Capital Behavioral Small Cap Value Equity Fund invests most of its assets, along with borrowings, if any, in equity securities of small capitalization companies. SPSAX advisors consider small-cap companies as those with a market capitalization within the range of companies listed on the Russell 2000 Index at the time of purchase.Sterling Capital Behavioral Small Cap Value Equity Fund has a three-year annualized return of 9.6%. Robert Weller has been the fund manager of SPSAX since June 2013.To view the Zacks Rank and the past performance of all small-cap value mutual funds, investors can click here to see the complete list of small-cap value mutual funds.Want key mutual fund info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>View All Zacks #1 Ranked Mutual FundsWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (VSCAX): Fund Analysis Report Get Your Free (SPSAX): Fund Analysis Report Get Your Free (CSMIX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks