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Is Franklin Mutual Quest Z (MQIFX) a Strong Mutual Fund Pick Right Now?
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Any investors hoping to find a Mutual Fund Equity Report fund might consider looking past Franklin Mutual Quest Z (MQIFX - Free Report) . MQIFX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Franklin Templeton is based in San Mateo, CA, and is the manager of MQIFX. Franklin Mutual Quest Z made its debut in September of 1980, and since then, MQIFX has accumulated about $2.43 billion in assets, per the most up-to-date date available. Keith Luh is the fund's current manager and has held that role since December of 2010.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 4.44%, and is in the bottom 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 5.57%, which places it in the bottom 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 14.1%, the standard deviation of MQIFX over the past three years is 15.01%. The fund's standard deviation over the past 5 years is 12.93% compared to the category average of 12.49%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.68, the fund is likely to be less volatile than the market average. 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. MQIFX's 5-year performance has produced a negative alpha of -5.4, which means 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, MQIFX is a no load fund. It has an expense ratio of 0.88% compared to the category average of 1.06%. Looking at the fund from a cost perspective, MQIFX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Franklin Mutual Quest Z ( MQIFX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Want even more information about MQIFX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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 Franklin Mutual Quest Z (MQIFX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Mutual Fund Equity Report fund might consider looking past Franklin Mutual Quest Z (MQIFX - Free Report) . MQIFX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Franklin Templeton is based in San Mateo, CA, and is the manager of MQIFX. Franklin Mutual Quest Z made its debut in September of 1980, and since then, MQIFX has accumulated about $2.43 billion in assets, per the most up-to-date date available. Keith Luh is the fund's current manager and has held that role since December of 2010.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 4.44%, and is in the bottom 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 5.57%, which places it in the bottom 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 14.1%, the standard deviation of MQIFX over the past three years is 15.01%. The fund's standard deviation over the past 5 years is 12.93% compared to the category average of 12.49%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.68, the fund is likely to be less volatile than the market average. 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. MQIFX's 5-year performance has produced a negative alpha of -5.4, which means 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, MQIFX is a no load fund. It has an expense ratio of 0.88% compared to the category average of 1.06%. Looking at the fund from a cost perspective, MQIFX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Franklin Mutual Quest Z ( MQIFX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Want even more information about MQIFX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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.