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Is JPMorgan Small Cap Growth Fund A (PGSGX) a Strong Mutual Fund Pick Right Now?
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Small Cap Growth fund seekers should consider taking a look at JPMorgan Small Cap Growth Fund A (PGSGX - Free Report) . PGSGX carries a Zacks Mutual Fund Rank of 2 (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 PGSGX. 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
J.P. Morgan is based in Boston, MA, and is the manager of PGSGX. JPMorgan Small Cap Growth Fund A debuted in July of 1991. Since then, PGSGX has accumulated assets of about $280.66 million, according to the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 7.18%, and it sits in the top 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 13.13%, which places it in the top 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. PGSGX's standard deviation over the past three years is 18.61% compared to the category average of 10.27%. Looking at the past 5 years, the fund's standard deviation is 18.38% compared to the category average of 10.14%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. PGSGX lost 55.68% in the most recent bear market and underperformed comparable funds by 2.71%. This makes the fund a possibly worse choice than its peers during a sliding market environment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. PGSGX has a 5-year beta of 1.29, which means it is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. PGSGX's 5-year performance has produced a negative alpha of -2.45, 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, PGSGX is a load fund. It has an expense ratio of 1.24% compared to the category average of 1.25%. So, PGSGX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $50.
Bottom Line
Overall, JPMorgan Small Cap Growth Fund A ( PGSGX ) has a high Zacks Mutual Fund rank, strong performance, worse downside risk, and lower fees compared to its peers.
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-funds for more information about the world of funds, and feel free to compare PGSGX to its peers as well 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 JPMorgan Small Cap Growth Fund A (PGSGX) a Strong Mutual Fund Pick Right Now?
Small Cap Growth fund seekers should consider taking a look at JPMorgan Small Cap Growth Fund A (PGSGX - Free Report) . PGSGX carries a Zacks Mutual Fund Rank of 2 (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 PGSGX. 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
J.P. Morgan is based in Boston, MA, and is the manager of PGSGX. JPMorgan Small Cap Growth Fund A debuted in July of 1991. Since then, PGSGX has accumulated assets of about $280.66 million, according to the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 7.18%, and it sits in the top 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 13.13%, which places it in the top 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. PGSGX's standard deviation over the past three years is 18.61% compared to the category average of 10.27%. Looking at the past 5 years, the fund's standard deviation is 18.38% compared to the category average of 10.14%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. PGSGX lost 55.68% in the most recent bear market and underperformed comparable funds by 2.71%. This makes the fund a possibly worse choice than its peers during a sliding market environment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. PGSGX has a 5-year beta of 1.29, which means it is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. PGSGX's 5-year performance has produced a negative alpha of -2.45, 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, PGSGX is a load fund. It has an expense ratio of 1.24% compared to the category average of 1.25%. So, PGSGX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $50.
Bottom Line
Overall, JPMorgan Small Cap Growth Fund A ( PGSGX ) has a high Zacks Mutual Fund rank, strong performance, worse downside risk, and lower fees compared to its peers.
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-funds for more information about the world of funds, and feel free to compare PGSGX to its peers as well 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.