Homestead’s Small-Company Stock Fund was again included on Kiplinger’s list of the magazine’s favorite actively managed no-load mutual funds. The fund has been named to the list every year since 2012.
The editors at Kiplinger’s favor funds run by tenured managers who take a long view and have proved themselves by having solid long-term records. They also prefer funds with below-average volatility for their category and low operating costs. They keep a close eye on a fund’s size because a gargantuan asset base can make managing a fund difficult.
Past performance does not guarantee future results. Share prices of small-capitalization stock funds may be more volatile than those of large-capitalization stock funds. Smaller companies may have limited product lines, markets or financial resources, or their management teams may have less depth and expertise, compared with large-capitalization companies.