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Is JPMorgan Small Cap Growth Fund A (PGSGX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Small Cap Growth fund? JPMorgan Small Cap Growth Fund A (PGSGX - Free Report) is a potential starting point. PGSGX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
PGSGX is one of many different Small Cap Growth funds to choose from. Small Cap Growth mutual funds build portfolios around stocks with markets caps under $2 billion and large growth opportunities. Additionally, these portfolios typically highlight smaller companies in promising markets and industries.
History of Fund/Manager
PGSGX finds itself in the J.P. Morgan family, based out of Boston, MA. JPMorgan Small Cap Growth Fund A made its debut in July of 1991, and since then, PGSGX has accumulated about $753.28 million in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 27.07%, and is in the top 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 22.22%, 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. The standard deviation of PGSGX over the past three years is 26.82% compared to the category average of 16.18%. Looking at the past 5 years, the fund's standard deviation is 21.78% compared to the category average of 13.36%. 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 1.24, so it is likely going to be more 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. The fund has produced a positive alpha over the past 5 years of 5.14, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, PGSGX is a load fund. It has an expense ratio of 1.23% compared to the category average of 1.21%. Looking at the fund from a cost perspective, PGSGX is actually more expensive than its peers.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, JPMorgan Small Cap Growth Fund A ( PGSGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, JPMorgan Small Cap Growth Fund A ( PGSGX ) looks like a good potential choice for investors right now.
This could just be the start of your research on PGSGXin the Small Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well 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 JPMorgan Small Cap Growth Fund A (PGSGX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Small Cap Growth fund? JPMorgan Small Cap Growth Fund A (PGSGX - Free Report) is a potential starting point. PGSGX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
PGSGX is one of many different Small Cap Growth funds to choose from. Small Cap Growth mutual funds build portfolios around stocks with markets caps under $2 billion and large growth opportunities. Additionally, these portfolios typically highlight smaller companies in promising markets and industries.
History of Fund/Manager
PGSGX finds itself in the J.P. Morgan family, based out of Boston, MA. JPMorgan Small Cap Growth Fund A made its debut in July of 1991, and since then, PGSGX has accumulated about $753.28 million in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 27.07%, and is in the top 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 22.22%, 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. The standard deviation of PGSGX over the past three years is 26.82% compared to the category average of 16.18%. Looking at the past 5 years, the fund's standard deviation is 21.78% compared to the category average of 13.36%. 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 1.24, so it is likely going to be more 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. The fund has produced a positive alpha over the past 5 years of 5.14, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, PGSGX is a load fund. It has an expense ratio of 1.23% compared to the category average of 1.21%. Looking at the fund from a cost perspective, PGSGX is actually more expensive than its peers.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, JPMorgan Small Cap Growth Fund A ( PGSGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, JPMorgan Small Cap Growth Fund A ( PGSGX ) looks like a good potential choice for investors right now.
This could just be the start of your research on PGSGXin the Small Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well 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.