There are plenty of choices in the Small Cap Growth category, but where should you start your research? Well, one fund that might be worth investigating is Hartford Small Company HLS IB (HDMBX Quick QuoteHDMBX - Free Report) . HDMBX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

The world of Small Cap Growth funds is an area filled with options, such as HDMBX. These funds tend to create their portfolios around stocks that sport large growth opportunities and market capitalization of less than $2 billion. The companies in these portfolios are usually on the smaller side, and are in up-and-coming industries and markets.

History of Fund/Manager

Hartford is based in Woodbury, MN, and is the manager of HDMBX. Hartford Small Company HLS IB debuted in October of 2002. Since then, HDMBX has accumulated assets of about $33.87 million, according to the most recently available information. Ranjit Ramachandran is the fund's current manager and has held that role since February of 2020.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 11.29%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of -2.17%, which places it in the bottom third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. HDMBX's standard deviation over the past three years is 22.39% compared to the category average of 18.22%. The standard deviation of the fund over the past 5 years is 23.21% compared to the category average of 19.75%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.15, the fund is likely to be more volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. With a negative alpha of -7.35, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, HDMBX is a no load fund. It has an expense ratio of 1.05% compared to the category average of 1.06%. So, HDMBX is actually cheaper than its peers from a cost perspective.

Investors should also note, that according to our data, the fund does not have any minimum investment requirements.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Hartford Small Company HLS IB ( HDMBX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Hartford Small Company HLS IB ( HDMBX ) looks like a great potential choice for investors right now.

For additional information on the Small Cap Growth area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into HDMBX too for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.