3 Best Small-Cap Value Mutual Funds To Buy Now

 | Aug 25, 2016 06:57AM ET

Small-cap value mutual funds provide excellent choices for investors who are looking for bargain, i.e., stocks at a discount, with an impressive growth potential. Value mutual funds are those that invest in stocks trading at discounts to book value, have a low price-to-earnings ratio and high dividend yields. Value investing has always been popular, and for a good reason. After all, who doesn’t want to find stocks with low PEs, solid outlooks and decent dividends?

A small-cap fund is a good choice for investors with a high risk appetite as companies with small market capitalization are expected to have a higher growth potential than large- and mid-cap companies. Small-cap funds generally invest in companies having market cap lower than $2 billion. Also, small-cap funds are expected to provide diversification across sectors and companies.

Below we share with you three top-rated, small-cap value mutual funds. Each has earned a Zacks Investment Research

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