Consider These 3 Small-Cap Value Mutual Funds for Excellent Returns

Written by Emily J. Thompson, Senior Investment Analyst

Source: NASDAQ.COM

Updated: Dec 18 2025

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Source: NASDAQ.COM

Small-Cap Funds Overview: Small-cap funds are suitable for high-risk investors seeking diversification, typically investing in companies with market caps under $2 billion, which offer significant growth potential.
Value Stocks and Funds: Value stocks trade below their fundamental value, and while some investors seek value funds for income, not all focus solely on dividend-paying companies; it's essential to check the mutual fund yield.
Highlighted Small-Cap Value Funds: Three recommended small-cap value mutual funds include Invesco Small Cap Value (VSCAX), Columbia Small Cap Value Discovery Fund (CSMIX), and Sterling Capital Behavioral Small Cap Value Equity Fund (SPSAX), all rated #1 by Zacks for strong performance.
Performance and Recommendations: The Invesco fund has a three-year annualized return of 19%, while Columbia and Sterling funds have returns of 12.7% and 9.6%, respectively; Zacks also offers insights on top-performing stocks for 2026.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.