Today we are featuring top-performing “small-cap” equity mutual funds that primarily invest in equity securities of companies with market capitalization of less than $2 billion.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Small-Cap Equity Funds list.

3 Strong Samples

Pioneer Small and Mid Cap Growth A (PAPPX) seeks long-term capital growth by investing primarily in the equity securities of small- and mid-sized U.S. companies that exhibit strong growth characteristics.

The fund primarily invests in equity securities of companies, which at the time of investment do not exceed the market capitalization of the largest company within the Russell MidCap Growth index. It diversifies by investing across a wide spectrum of industries.

O’Reilly Automotive Inc. (ORLY), Informatica Corp. (INFA) and DeVry Inc. (DV) are some of the largest holdings at the fund.

JPMorgan Small Cap Equity A (VSEAX) seeks capital growth over the long term. The fund invests in undervalued companies with leading competitive positions, predictable and durable business models and management that can achieve sustained growth.

The fund has outperformed its benchmark index in the 1-, 3- and 5-year periods in turns of total returns. As of December 2008, its portfolio turnover was 52%.

The fund’s top holdings include Proassurance Corp. (PRA), Silgan Holdings Inc. (SLGN) and eHealth Inc. (EHTH).

First Eagle U.S. Value A (FEVAX) seeks long-term growth of capital by investing primarily in equities issued by U.S. corporations. It invests in domestic securities regardless of market capitalization, sector or asset class.

The fund seeks to preserve capital and consistently generate positive absolute returns independent of broad market conditions. It has topped the benchmark index in the last 1-, 3- and 5-year periods.

Unit holders have to make a minimum initial investment of $2,500 to enter the Zacks#1 Rank (”Strong Buy”) fund. FEVAX distributes dividends and capital gains, if any, annually.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

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