The holiday season is a time of year during which many of us open up our hearts and homes and reconnect with friends and family. However, there’s quite a Scrooge-like attitude coming from the mutual fund world when it comes to investors looking for a way to play the sizzling small-cap class.
Many high-quality funds are closed to new investors. Fund favorites like Fidelity Small-Cap Discovery (FSCRX), Fidelity Small-Cap Value (FCPVX) and Artisan Small Cap (ARTSX) are all off-limits to new investors. T. Rowe Price New Horizons (PRNHX) will be closed to new investors effective Dec. 31. It’s a welcome problem — these funds’ assets have grown uncomfortably large thanks to both new money coming in and existing stocks being bid up in price.
Still, a few small-cap mutual funds are willing to greet new fund investors, and they’re very much worth considering. After all, mutual funds offer a smart way for investors to capture the potential explosive growth in small company stocks while avoiding the pitfalls of picking and monitoring these lesser-known names.
Here are three compelling no-load mutual funds that are open to new investors: