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Is Principal Large Cap Growth I Institutional (PLGIX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is Principal Large Cap Growth I Institutional (PLGIX - Free Report) . PLGIX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Principal Financial Group is based in Des Moines, IA, and is the manager of PLGIX. Principal Large Cap Growth I Institutional debuted in November of 2000. Since then, PLGIX has accumulated assets of about $2.52 billion, according to the most recently available information. The fund's current manager, Randy Welch, has been in charge of the fund since June of 2009.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 10.35%, and it sits in the middle 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 12.58%, 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 18%, the standard deviation of PLGIX over the past three years is 23.32%. Over the past 5 years, the standard deviation of the fund is 20.95% compared to the category average of 15.85%. 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 1.07, which means it is hypothetically more volatile than the market at large. 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. PLGIX's 5-year performance has produced a negative alpha of -1.01, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
Right now, 87.66% of this mutual fund's holdings are stocks, with an average market capitalization of $258.11 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
This fund's turnover is about 28.4%, so the fund managers are making fewer trades than its comparable peers.
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, PLGIX is a no load fund. It has an expense ratio of 0.68% compared to the category average of 0.99%. Looking at the fund from a cost perspective, PLGIX is actually cheaper than its peers.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Principal Large Cap Growth I Institutional ( PLGIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and lower fees, Principal Large Cap Growth I Institutional ( PLGIX ) looks like a great potential choice for investors right now.
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into PLGIX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is Principal Large Cap Growth I Institutional (PLGIX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is Principal Large Cap Growth I Institutional (PLGIX - Free Report) . PLGIX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Principal Financial Group is based in Des Moines, IA, and is the manager of PLGIX. Principal Large Cap Growth I Institutional debuted in November of 2000. Since then, PLGIX has accumulated assets of about $2.52 billion, according to the most recently available information. The fund's current manager, Randy Welch, has been in charge of the fund since June of 2009.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 10.35%, and it sits in the middle 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 12.58%, 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 18%, the standard deviation of PLGIX over the past three years is 23.32%. Over the past 5 years, the standard deviation of the fund is 20.95% compared to the category average of 15.85%. 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 1.07, which means it is hypothetically more volatile than the market at large. 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. PLGIX's 5-year performance has produced a negative alpha of -1.01, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
Right now, 87.66% of this mutual fund's holdings are stocks, with an average market capitalization of $258.11 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
This fund's turnover is about 28.4%, so the fund managers are making fewer trades than its comparable peers.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, PLGIX is a no load fund. It has an expense ratio of 0.68% compared to the category average of 0.99%. Looking at the fund from a cost perspective, PLGIX is actually cheaper than its peers.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Principal Large Cap Growth I Institutional ( PLGIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and lower fees, Principal Large Cap Growth I Institutional ( PLGIX ) looks like a great potential choice for investors right now.
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into PLGIX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.