Need Help With Small Cap Fund

I need a little help here. I am trying to add a little small cap funds to my portfolio. Right now I have the FBR Smallcap fund which is a good growth fund, but I need a good small value fund to add with this. Any suggestions for me? I wanted to add the Third Avenue Value Fund but the minimum is $10,000 for that fund. Please help.

Get it through a brokerage (they will combine your order with others' to meet or exceed the minimum) or go to www.morningstar.com (http://www.morningstar.com/) and find a comparable fund.

Hi Benrayanv,

First, the Third Avenue Value Fund is a good choice, but it is not a small cap value fund. Third Avenue has a small cap value fund, but it is closed to new investors. There are very few small cap value funds that are open to new investors and that is probably a good thing. Small-cap value in general has performed exceptional well for several years until this year. It is having a terrible year. I am a big fan of the Royce Funds, a company that has specialized in smaller cap value investing for decades. The Royce Total Return Fund, which is a small-cap value fund, is still open to new investors and they also have some other very good smaller cap funds. Northern Small Cap Value Fund is also still open to new investors.


I hope this helps.

Michael A. Weiss, CFA
The Editor
The Mutual Fund Investor
http://www.mutualfundinvestor.net

I agree with michael, Royce funds is a great company for your type of investment.

qk