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Is MassMutual Sel Small Cap Grth Eq I (MSGZX) a Strong Mutual Fund Pick Right Now
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If investors are looking at the Small Cap Growth fund category, MassMutual Select Small Cap Growth Equity I (MSGZX - Free Report) could be a potential option. MSGZX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Small Cap Growth funds is an area filled with options, such as MSGZX. These funds tend to create their portfolios around stocks that sport large growth opportunities and market capitalization of less than $2 billion. The companies in these portfolios are usually on the smaller side, and are in up-and-coming industries and markets.
History of Fund/Manager
MassMutual is based in Springfield, MA, and is the manager of MSGZX. Since MassMutual Select Small Cap Growth Equity I made its debut in November of 2010, MSGZX has garnered more than $287.96 million in assets. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 15.08%, 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 8.52%, 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 9.54%, the standard deviation of MSGZX over the past three years is 13.38%. The fund's standard deviation over the past 5 years is 13.35% compared to the category average of 13.81%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment.
Investors should note that the fund has a 5-year beta of 1.13, so it is likely going to be more 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 -1.49, 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 largely on equities that are traded in the United States.
As of the last filing date, the mutual fund has 95.93% of its assets in stocks, with an average market capitalization of $3.53 billion. The fund has the heaviest exposure to the following market sectors:
Finance
Technology
Industrial Cyclical
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, MSGZX is a no load fund. It has an expense ratio of 0.86% compared to the category average of 1.36%. From a cost perspective, MSGZX is actually cheaper than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Bottom Line
Overall, MassMutual Select Small Cap Growth Equity I MSGZX has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, MassMutual Select Small Cap Growth Equity I MSGZX looks like a good potential choice for investors right now.
Don't stop here for your research on Small Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-fund for more information about the world of funds, and feel free to compare MSGZX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is MassMutual Sel Small Cap Grth Eq I (MSGZX) a Strong Mutual Fund Pick Right Now
If investors are looking at the Small Cap Growth fund category, MassMutual Select Small Cap Growth Equity I (MSGZX - Free Report) could be a potential option. MSGZX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Small Cap Growth funds is an area filled with options, such as MSGZX. These funds tend to create their portfolios around stocks that sport large growth opportunities and market capitalization of less than $2 billion. The companies in these portfolios are usually on the smaller side, and are in up-and-coming industries and markets.
History of Fund/Manager
MassMutual is based in Springfield, MA, and is the manager of MSGZX. Since MassMutual Select Small Cap Growth Equity I made its debut in November of 2010, MSGZX has garnered more than $287.96 million in assets. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 15.08%, 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 8.52%, 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 9.54%, the standard deviation of MSGZX over the past three years is 13.38%. The fund's standard deviation over the past 5 years is 13.35% compared to the category average of 13.81%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment.
Investors should note that the fund has a 5-year beta of 1.13, so it is likely going to be more 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 -1.49, 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 largely on equities that are traded in the United States.
As of the last filing date, the mutual fund has 95.93% of its assets in stocks, with an average market capitalization of $3.53 billion. The fund has the heaviest exposure to the following market sectors:
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, MSGZX is a no load fund. It has an expense ratio of 0.86% compared to the category average of 1.36%. From a cost perspective, MSGZX is actually cheaper than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Bottom Line
Overall, MassMutual Select Small Cap Growth Equity I MSGZX has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, MassMutual Select Small Cap Growth Equity I MSGZX looks like a good potential choice for investors right now.
Don't stop here for your research on Small Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-fund for more information about the world of funds, and feel free to compare MSGZX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.