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There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that might be worth investigating is Colorado Bond Shares Tax-Exempt A (HICOX - Free Report) . HICOX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Freedom Funds is based in Denver, CO, and is the manager of HICOX. Colorado Bond Shares Tax-Exempt A made its debut in June of 1987, and since then, HICOX has accumulated about $1.65 billion in assets, per the most up-to-date date available. Fred R. Kelly Jr. Is the fund's current manager and has held that role since November of 1990.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 2.48%, and it sits 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 0.42%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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 HICOX over the past three years is 5.72% compared to the category average of 6.37%. Looking at the past 5 years, the fund's standard deviation is 5.25% compared to the category average of 5.48%. This makes the fund less volatile than its peers over the past half-decade.
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, HICOX is a load fund. It has an expense ratio of 0.61% compared to the category average of 0.75%. Looking at the fund from a cost perspective, HICOX is actually cheaper than its peers.
This fund requires a minimum initial investment of $500, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Colorado Bond Shares Tax-Exempt A ( HICOX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on the Mutual Fund Bond 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 HICOX too 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 HICOX a Strong Bond Fund Right Now?
There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that might be worth investigating is Colorado Bond Shares Tax-Exempt A (HICOX - Free Report) . HICOX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Freedom Funds is based in Denver, CO, and is the manager of HICOX. Colorado Bond Shares Tax-Exempt A made its debut in June of 1987, and since then, HICOX has accumulated about $1.65 billion in assets, per the most up-to-date date available. Fred R. Kelly Jr. Is the fund's current manager and has held that role since November of 1990.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 2.48%, and it sits 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 0.42%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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 HICOX over the past three years is 5.72% compared to the category average of 6.37%. Looking at the past 5 years, the fund's standard deviation is 5.25% compared to the category average of 5.48%. This makes the fund less volatile than its peers over the past half-decade.
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, HICOX is a load fund. It has an expense ratio of 0.61% compared to the category average of 0.75%. Looking at the fund from a cost perspective, HICOX is actually cheaper than its peers.
This fund requires a minimum initial investment of $500, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Colorado Bond Shares Tax-Exempt A ( HICOX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on the Mutual Fund Bond 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 HICOX too 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.