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Is Bruce Fund (BRUFX) a Strong Mutual Fund Pick Right Now?
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Allocation Balanced fund seekers should consider taking a look at Bruce Fund (BRUFX - Free Report) . BRUFX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
BRUFX is classified in the Allocation Balanced segment by Zacks, which is an area full of possibilities. Here, investors are able to get a good head start with diversified mutual funds, and play around with core holding options for a portfolio of funds. Allocation Balanced funds look to invest across a balance of asset types, like stocks, bonds, and cash, though including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation.
History of Fund/Manager
Bruce is based in Chicago, IL, and is the manager of BRUFX. Since Bruce Fund made its debut in October of 1983, BRUFX has garnered more than $561.03 million in assets. The fund's current manager, Robert B. Bruce, has been in charge of the fund since December of 1983.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. BRUFX has a 5-year annualized total return of 9.36% and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 13.18%, which places it in the top 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. Compared to the category average of 13.01%, the standard deviation of BRUFX over the past three years is 11.57%. Looking at the past 5 years, the fund's standard deviation is 9.65% compared to the category average of 10.58%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.54, so it is likely going to be less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -0.64. This means that 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, BRUFX is a no load fund. It has an expense ratio of 0.67% compared to the category average of 0.89%. Looking at the fund from a cost perspective, BRUFX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $500.
Bottom Line
Overall, Bruce Fund ( BRUFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Bruce Fund ( BRUFX ) looks like a great potential choice for investors right now.
Don't stop here for your research on Allocation Balanced funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare BRUFX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is Bruce Fund (BRUFX) a Strong Mutual Fund Pick Right Now?
Allocation Balanced fund seekers should consider taking a look at Bruce Fund (BRUFX - Free Report) . BRUFX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
BRUFX is classified in the Allocation Balanced segment by Zacks, which is an area full of possibilities. Here, investors are able to get a good head start with diversified mutual funds, and play around with core holding options for a portfolio of funds. Allocation Balanced funds look to invest across a balance of asset types, like stocks, bonds, and cash, though including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation.
History of Fund/Manager
Bruce is based in Chicago, IL, and is the manager of BRUFX. Since Bruce Fund made its debut in October of 1983, BRUFX has garnered more than $561.03 million in assets. The fund's current manager, Robert B. Bruce, has been in charge of the fund since December of 1983.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. BRUFX has a 5-year annualized total return of 9.36% and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 13.18%, which places it in the top 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. Compared to the category average of 13.01%, the standard deviation of BRUFX over the past three years is 11.57%. Looking at the past 5 years, the fund's standard deviation is 9.65% compared to the category average of 10.58%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.54, so it is likely going to be less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -0.64. This means that 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, BRUFX is a no load fund. It has an expense ratio of 0.67% compared to the category average of 0.89%. Looking at the fund from a cost perspective, BRUFX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $500.
Bottom Line
Overall, Bruce Fund ( BRUFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Bruce Fund ( BRUFX ) looks like a great potential choice for investors right now.
Don't stop here for your research on Allocation Balanced funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare BRUFX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.