Earlier this week, I looked at two big winners and two losers in the small-cap world. One thing that can’t be overlooked, though, is that investing in this space is fraught with risks.
For example, the return of small-cap stocks with market caps between $100 million to $1 billion was a dismal 3.5% loss so far in 2013.
Of course, there’s a way to help deal with this: invest in a fund.
By doing so, you get the benefits of expert portfolio management as well as diversification. The returns can also be attractive. Consider that — according to Morningstar.com — the average gain for small-cap funds is 8% for 2013.
With that in mind, let’s take a look at four small-cap funds to consider.