3 Small-Cap Value Mutual Funds for Impressive Returns

Small-Cap Funds Overview: Small-cap funds are suitable for high-risk investors seeking diversification, typically investing in companies with a market cap under $2 billion, which offer significant growth potential. Notable small-cap value mutual funds include DFA US Small Cap Value, Vericimetry US Small Cap Value, and Hotchkis & Wiley Small Cap Diversified Value Fund, all rated as strong buys.

Value Stocks and Mutual Fund Yield: Value stocks trade below their fundamental values, attracting investors looking for income; however, not all value funds focus solely on dividend-paying companies. Investors should check the mutual fund yield, calculated as dividend payments divided by the fund's share value, to assess potential returns.