There are many choices in the Mutual Fund Equity report category, but where should you start your research? Well, one fund worth checking out is the Growth Fund of America C (GFACX). GFACX has a Zacks Mutual Fund Rating of 2 (Buy) based on nine predictive factors such as size, expense and past performance.
American Funds is based in Los Angeles, CA, and is the manager of GFACX. American Funds Growth Fund of America C Since its debut in March 2001, GFACX has amassed more than $3.25 billion in assets. The fund’s current manager is a group of investment professionals.
Clearly, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular delivered a 5-year annualized total return of 8.11%, which is in the bottom third of its category peers. Investors who prefer to analyze shorter time frames should look at their 3-year annualized total return of 7.08%, which places them in the middle third of this time frame.
When looking at a fund’s performance, it’s also important to note the standard deviation of returns. The lower the standard deviation, the lower the volatility of the fund’s experiences. The standard deviation of GFACX is 22.43 percent compared to the category average of 17 percent over the past three years. Over the past 5 years, the fund’s standard deviation is 19.85% versus the category average of 14.92%. This makes the fund more volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 1.03, so it can be as volatile as the market. Alpha is an additional measure to consider, as it represents the portfolio’s performance against a risk-adjusted benchmark, in this case the S&P 500. -2.65, indicating that managers in this portfolio have difficulty selecting securities that generate better returns than the benchmark.
Investigating mutual fund equity holdings is also a valuable exercise. This can show us how the manager applies the described method and also if there are any inherent biases in their approach. For this particular fund, the focus is mostly on stocks traded in the United States.
As of the last filing date, the mutual fund held 93.15% of its assets in stocks, with an average market cap of $309.78 billion. The fund has significant exposure to the following market sectors:
The margin is 30%, which means, on average, the fund trades less than the average comparable fund.
As expenses become increasingly important for mutual fund investments, it is key for investors to keep a close eye on expense-related metrics. Competition is heating up in this space, and a low-cost product can outperform its equivalent, all things being equal. In terms of fees, GFACX is a no-load fund. It has an expense ratio of 1.36% compared to the category average of 0.99%. Looking at the money in terms of costs, GFACX is certainly more expensive than its peers.
Investors should note that the minimum initial investment for the product is $250 and each subsequent investment must be $50.
Overall, American Funds Growth Fund of America C (GFACX) has a high Zacks Mutual Fund Rank, and combined with its relatively weak performance, average downside risk, and high fees, American Funds Growth Fund of America C (GFACX) looks like a good option for investors right now. .
Don’t stop here for your research on Mutual Fund Equity Report Funds. We have a lot more on our site to help you find the best fund for your portfolio. For more information on the fund world, visit www.zacks.com/funds/mutual-funds and feel free to compare GFACX to its peers for additional information. Want to learn more? No matter what type of investor you are, we have a full suite of tools on stocks that you can use to find the best picks for your portfolio.
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