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Is Columbia Large Cap Enhanced Core A (NMIAX) a Strong Mutual Fund Pick Right Now?
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Large Cap Blend fund seekers may want to consider taking a look at Columbia Large Cap Enhanced Core A (NMIAX - Free Report) . NMIAX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
NMIAX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a " buy and hold " mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.
History of Fund/Manager
NMIAX is a part of the Columbia family of funds, a company based out of Kansas City, MO. Columbia Large Cap Enhanced Core A made its debut in July of 1996, and since then, NMIAX has accumulated about $54.47 million in assets, per the most up-to-date date available. Peter Albanese is the fund's current manager and has held that role since August of 2014.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 9.87%, and is 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 8.22%, which places it in the middle third during this time-frame.
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. The standard deviation of NMIAX over the past three years is 18.53% compared to the category average of 14.76%. Over the past 5 years, the standard deviation of the fund is 15.2% compared to the category average of 12.6%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.03, so it is likely going to be as volatile as the market at large. 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. NMIAX has generated a negative alpha over the past five years of -1.93, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.
This fund is currently holding about 84.46% stock in stocks, which have an average market capitalization of $334.64 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
Health
Retail Trade
Turnover is about 77%, so those in charge of the fund make more trades in a given year than the average of comparable funds.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, NMIAX is a no load fund. It has an expense ratio of 0.87% compared to the category average of 0.97%. From a cost perspective, NMIAX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $2,000; each subsequent investment has no minimum amount.
Bottom Line
Overall, Columbia Large Cap Enhanced Core A ( NMIAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Columbia Large Cap Enhanced Core A ( NMIAX ) looks like a somewhat average choice for investors right now.
For additional information on the Large Cap Blend 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 NMIAX 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.
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Is Columbia Large Cap Enhanced Core A (NMIAX) a Strong Mutual Fund Pick Right Now?
Large Cap Blend fund seekers may want to consider taking a look at Columbia Large Cap Enhanced Core A (NMIAX - Free Report) . NMIAX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
NMIAX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a " buy and hold " mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.
History of Fund/Manager
NMIAX is a part of the Columbia family of funds, a company based out of Kansas City, MO. Columbia Large Cap Enhanced Core A made its debut in July of 1996, and since then, NMIAX has accumulated about $54.47 million in assets, per the most up-to-date date available. Peter Albanese is the fund's current manager and has held that role since August of 2014.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 9.87%, and is 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 8.22%, which places it in the middle third during this time-frame.
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. The standard deviation of NMIAX over the past three years is 18.53% compared to the category average of 14.76%. Over the past 5 years, the standard deviation of the fund is 15.2% compared to the category average of 12.6%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.03, so it is likely going to be as volatile as the market at large. 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. NMIAX has generated a negative alpha over the past five years of -1.93, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.
This fund is currently holding about 84.46% stock in stocks, which have an average market capitalization of $334.64 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Finance
- Health
- Retail Trade
Turnover is about 77%, so those in charge of the fund make more trades in a given year than the average of comparable funds.Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, NMIAX is a no load fund. It has an expense ratio of 0.87% compared to the category average of 0.97%. From a cost perspective, NMIAX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $2,000; each subsequent investment has no minimum amount.
Bottom Line
Overall, Columbia Large Cap Enhanced Core A ( NMIAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Columbia Large Cap Enhanced Core A ( NMIAX ) looks like a somewhat average choice for investors right now.
For additional information on the Large Cap Blend 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 NMIAX 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.