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Is Parnassus Core Equity Fund (PRBLX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Large Cap Value fund? Starting with Parnassus Core Equity Fund (PRBLX - Free Report) should not be a possibility at this time. PRBLX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
PRBLX is a part of the Parnassus family of funds, a company based out of San Francisco, CA. Since Parnassus Core Equity Fund made its debut in August of 1992, PRBLX has garnered more than $9.75 billion in assets. Todd C. Ahlsten is the fund's current manager and has held that role since May of 2001.
Performance
Investors naturally seek funds with strong performance. PRBLX has a 5-year annualized total return of 14.16% and it sits in the middle 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 8.3%, which places it in the middle 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. PRBLX's standard deviation over the past three years is 8.63% compared to the category average of 9.6%. Over the past 5 years, the standard deviation of the fund is 8.99% compared to the category average of 9.89%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. In PRBLX's case, the fund lost 35.61% in the most recent bear market and outperformed its peer group by 14.51%. This could mean that the fund is a better choice than comparable funds during a bear market.
And for investors concerned about the potential drawdown in a really bad calendar year, we can look back to 2008 for that figure. In its worst calendar year in a decade, the fund lost over 22.95%.
Even still, the fund has a 5-year beta of 0.9, so investors should note that it is hypothetically less 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. PRBLX has generated a positive alpha over the past five years of 0.5, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring 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 largely on equities that are traded in the United States.
This fund is currently holding about 97.41% stock in stocks, which have an average market capitalization of $119.62 billion. The fund has the heaviest exposure to the following market sectors:
Industrial Cyclical
Technology
Retail Trade
Non-Durable
Turnover is 35.22%, which means, on average, the fund makes fewer trades than comparable funds.
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, PRBLX is a no load fund. It has an expense ratio of 0.87% compared to the category average of 1.05%. Looking at the fund from a cost perspective, PRBLX is actually cheaper than its peers.
This fund requires a minimum initial investment of $2,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, Parnassus Core Equity Fund PRBLX has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Want even more information about PRBLX? 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. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is Parnassus Core Equity Fund (PRBLX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Large Cap Value fund? Starting with Parnassus Core Equity Fund (PRBLX - Free Report) should not be a possibility at this time. PRBLX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
PRBLX is a part of the Parnassus family of funds, a company based out of San Francisco, CA. Since Parnassus Core Equity Fund made its debut in August of 1992, PRBLX has garnered more than $9.75 billion in assets. Todd C. Ahlsten is the fund's current manager and has held that role since May of 2001.
Performance
Investors naturally seek funds with strong performance. PRBLX has a 5-year annualized total return of 14.16% and it sits in the middle 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 8.3%, which places it in the middle 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. PRBLX's standard deviation over the past three years is 8.63% compared to the category average of 9.6%. Over the past 5 years, the standard deviation of the fund is 8.99% compared to the category average of 9.89%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. In PRBLX's case, the fund lost 35.61% in the most recent bear market and outperformed its peer group by 14.51%. This could mean that the fund is a better choice than comparable funds during a bear market.
And for investors concerned about the potential drawdown in a really bad calendar year, we can look back to 2008 for that figure. In its worst calendar year in a decade, the fund lost over 22.95%.
Even still, the fund has a 5-year beta of 0.9, so investors should note that it is hypothetically less 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. PRBLX has generated a positive alpha over the past five years of 0.5, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring 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 largely on equities that are traded in the United States.
This fund is currently holding about 97.41% stock in stocks, which have an average market capitalization of $119.62 billion. The fund has the heaviest exposure to the following market sectors:
Turnover is 35.22%, which means, on average, the fund makes fewer trades than comparable funds.
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, PRBLX is a no load fund. It has an expense ratio of 0.87% compared to the category average of 1.05%. Looking at the fund from a cost perspective, PRBLX is actually cheaper than its peers.
This fund requires a minimum initial investment of $2,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, Parnassus Core Equity Fund PRBLX has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Want even more information about PRBLX? 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. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.