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Is Edgewood Growth Fund Institutional (EGFIX) a Strong Mutual Fund Pick Right Now?
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Large Cap Growth fund seekers should consider taking a look at Edgewood Growth Fund Institutional (EGFIX - Free Report) . EGFIX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
EGFIX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
Edgewood is based in Kansas City, MO, and is the manager of EGFIX. Edgewood Growth Fund Institutional debuted in March of 2006. Since then, EGFIX has accumulated assets of about $26.30 billion, according to the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 25.68%, and it sits in the top 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 24.72%, 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 17.5%, the standard deviation of EGFIX over the past three years is 18.98%. The standard deviation of the fund over the past 5 years is 15.76% compared to the category average of 14.4%. 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 0.92, which means it is hypothetically 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 positive alpha of 9.02. This means that managers in this portfolio are skilled in picking 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, EGFIX is a no load fund. It has an expense ratio of 1% compared to the category average of 1.02%. Looking at the fund from a cost perspective, EGFIX is actually cheaper than its peers.
This fund requires a minimum initial investment of $100,000, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Edgewood Growth Fund Institutional ( EGFIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Edgewood Growth Fund Institutional ( EGFIX ) looks like a good potential choice for investors right now.
This could just be the start of your research on EGFIXin the Large 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. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is Edgewood Growth Fund Institutional (EGFIX) a Strong Mutual Fund Pick Right Now?
Large Cap Growth fund seekers should consider taking a look at Edgewood Growth Fund Institutional (EGFIX - Free Report) . EGFIX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
EGFIX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
Edgewood is based in Kansas City, MO, and is the manager of EGFIX. Edgewood Growth Fund Institutional debuted in March of 2006. Since then, EGFIX has accumulated assets of about $26.30 billion, according to the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 25.68%, and it sits in the top 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 24.72%, 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 17.5%, the standard deviation of EGFIX over the past three years is 18.98%. The standard deviation of the fund over the past 5 years is 15.76% compared to the category average of 14.4%. 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 0.92, which means it is hypothetically 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 positive alpha of 9.02. This means that managers in this portfolio are skilled in picking 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, EGFIX is a no load fund. It has an expense ratio of 1% compared to the category average of 1.02%. Looking at the fund from a cost perspective, EGFIX is actually cheaper than its peers.
This fund requires a minimum initial investment of $100,000, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Edgewood Growth Fund Institutional ( EGFIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Edgewood Growth Fund Institutional ( EGFIX ) looks like a good potential choice for investors right now.
This could just be the start of your research on EGFIXin the Large 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. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.