Small-Cap Fund | Mutual Funds | Growth Fund ETF

This position is on the small-cap funds, and how you can use these investment vehicles versatile. Each mutual fund has its own unique investment approach. Certain targeted areas such as technology or industry. Other objectives, depending on the growth potential or the fundamental value of a company. And still others are based on company size, as small-cap mutual funds.

The stocks are divided into sizes ranging from market value. Also known as market value is calculated by multiplying the outstanding shares of stock prices. This will give you the total contract value gives a specific company. There are generally three categories of size cap, large cap, small cap and mid cap.

Large cap stocks are those with a market capitalization of $ 10 billion. Mid cap stocks are $ 2 billion - 10 billion. And small-capitalization stocks are those valued at less than $ 2 billion. There are also mega-caps, micro caps and nano caps are more narrowly defined. It is not hard either definition. It can fluctuate depending on who you speak. But that's the general idea.

Thus, investment funds small cap are looking for stocks with a market capitalization of less than $ 2 billion. These are companies such as AirTran Holdings (AAI) for $ 760 million, Quest Software (QSFT) to 1.78 million, WESCO International (WCC) to 1.66 million in market capitalization.