Grab These 3 Small-Cap Value Mutual Funds for Strong Growth

Small-cap value mutual funds provide excellent choices for investors looking for bargains, i.e., stocks at a discount with impressive growth potential. Value mutual funds comprise stocks trading at a discount to book value, low price-to-earnings ratios and high dividend yields.Value investing is a very popular strategy, and for a good reason. After all, who doesn’t want to find stocks with a low Price/Earnings (P/E) ratio, solid outlooks and decent dividends? Additionally, small-cap funds are good choices for investors with a high-risk appetite, as companies with small market capitalizations are expected to have higher growth potential than large- and mid-cap companies. Small-cap funds generally invest in companies with a market cap of less than $2 billion. Also, small-cap funds are expected to provide diversification across different sectors and companies.Below, we share with you three top-ranked small-cap value mutual funds, namely, FPA Queens Road Small Cap Value QRSVX, DFA US Targeted Value DFFVX and Invesco Small Cap Value VSCAX. Each has 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 Small Cap Value mutual funds.FPA Queens Road Small Cap Value seeks to achieve its objective by mainly investing in equity securities, such as common, preferred, and convertible stocks of small-cap U.S. companies. Normally, it invests the majority of its net assets (including investment borrowings) in small-cap equities.FPA Queens Road Small Cap Value has a three-year annualized return of 11.5%. As of May 2025, QRSVX held 52 issues, with 3.8% of its assets invested in Synnex Corp.DFA US Targeted Value invests in a varied group of readily marketable securities of U.S. small and mid-cap companies that its advisors consider to be value stocks with high profitability.DFA US Targeted Value has a three-year annualized return of 8.8%. DFFVX has an expense ratio of 0.29%.Invesco Small Cap Value seeks long-term capital growth by investing the majority of its net assets in the undervalued securities of small-cap companies. VSCAX invests primarily in common stock.Invesco Small Cap Value has a three-year annualized return of 18%. Jonathan Mueller has been one of the fund managers of VSCAX since June 2010.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 >>5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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 (QRSVX): Fund Analysis Report Get Your Free (DFFVX): 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