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Is Columbia Balanced A (CBLAX) a Strong Mutual Fund Pick Right Now?

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If you have been looking for Mutual Fund Equity Report funds, a place to start could be Columbia Balanced A (CBLAX - Free Report) . CBLAX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

Columbia is based in Kansas City, MO, and is the manager of CBLAX. Since Columbia Balanced A made its debut in October of 2002, CBLAX has garnered more than $3.54 billion in assets. The fund's current manager is a team of investment professionals.

Performance

Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 12.12%, 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 15.76%, 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 14.83%, the standard deviation of CBLAX over the past three years is 12.55%. The standard deviation of the fund over the past 5 years is 10.48% compared to the category average of 12.23%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 0.67, so investors should note that 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. With a negative alpha of -0.77, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, CBLAX is a load fund. It has an expense ratio of 0.93% compared to the category average of 0.89%. So, CBLAX is actually more expensive than its peers from a cost perspective.

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 Balanced A ( CBLAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Columbia Balanced A ( CBLAX ) looks like a good potential choice for investors right now.

This could just be the start of your research on CBLAXin the Mutual Fund Equity Report 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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