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Is Mairs & Power Growth Fund (MPGFX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Large Cap Blend fund? Starting with Mairs & Power Growth Fund (MPGFX - Free Report) is one possibility. MPGFX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
MPGFX is classified in the Large Cap Blend segment by Zacks, which is an area full of potential. Targeting companies with market caps of more than $10 billion, Large Cap Blend mutual funds offer a stable investment choice; these funds are perfect for investors with a " buy and hold " mindset. Since blended funds mix large, more established firms into their portfolios, investors are exposed to both value and growth opportunities.
History of Fund/Manager
Mairs & Power is responsible for MPGFX, and the company is based out of St. Paul, MN. The Mairs & Power Growth Fund made its debut in November of 1958 and MPGFX has managed to accumulate roughly $4.47 billion in assets, as of the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. MPGFX has a 5-year annualized total return of 9.24% 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 11.15%, 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. The standard deviation of MPGFX over the past three years is 11.47% compared to the category average of 11.21%. Over the past 5 years, the standard deviation of the fund is 11.63% compared to the category average of 11.63%. This makes the fund as volatile as 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. In the most recent bear market, MPGFX lost 44.89% and outperformed its peer group by 4.48%. This makes the fund a possibly better choice than its peers during a sliding market environment.
Even still, the fund has a 5-year beta of 0.96, so investors should note that it is hypothetically less volatile than the market at large. 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. MPGFX's 5-year performance has produced a negative alpha of -1.73, 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 principally on equities that are traded in the United States.
As of the last filing date, the mutual fund has 93.18% of its assets in stocks, which have an average market capitalization of $126.61 billion. The fund has the heaviest exposure to the following market sectors:
Industrial Cyclical
Health
Technology
Finance
Non-Durable
With turnover at about 9.25%, this fund makes fewer trades than its comparable peers.
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, MPGFX is a no load fund. It has an expense ratio of 0.64% compared to the category average of 0.96%. From a cost perspective, MPGFX is actually cheaper than its peers.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Bottom Line
Overall, Mairs & Power Growth Fund ( MPGFX ) has a high Zacks Mutual Fund rank, similar performance, average downside risk, and lower fees compared to its peers.
Don't stop here for your research on Large Cap Blend 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 MPGFX 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 Mairs & Power Growth Fund (MPGFX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Large Cap Blend fund? Starting with Mairs & Power Growth Fund (MPGFX - Free Report) is one possibility. MPGFX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
MPGFX is classified in the Large Cap Blend segment by Zacks, which is an area full of potential. Targeting companies with market caps of more than $10 billion, Large Cap Blend mutual funds offer a stable investment choice; these funds are perfect for investors with a " buy and hold " mindset. Since blended funds mix large, more established firms into their portfolios, investors are exposed to both value and growth opportunities.
History of Fund/Manager
Mairs & Power is responsible for MPGFX, and the company is based out of St. Paul, MN. The Mairs & Power Growth Fund made its debut in November of 1958 and MPGFX has managed to accumulate roughly $4.47 billion in assets, as of the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. MPGFX has a 5-year annualized total return of 9.24% 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 11.15%, 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. The standard deviation of MPGFX over the past three years is 11.47% compared to the category average of 11.21%. Over the past 5 years, the standard deviation of the fund is 11.63% compared to the category average of 11.63%. This makes the fund as volatile as 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. In the most recent bear market, MPGFX lost 44.89% and outperformed its peer group by 4.48%. This makes the fund a possibly better choice than its peers during a sliding market environment.
Even still, the fund has a 5-year beta of 0.96, so investors should note that it is hypothetically less volatile than the market at large. 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. MPGFX's 5-year performance has produced a negative alpha of -1.73, 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 principally on equities that are traded in the United States.
As of the last filing date, the mutual fund has 93.18% of its assets in stocks, which have an average market capitalization of $126.61 billion. The fund has the heaviest exposure to the following market sectors:
- Industrial Cyclical
- Health
- Technology
- Finance
- Non-Durable
With turnover at about 9.25%, this fund makes fewer trades than its comparable peers.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, MPGFX is a no load fund. It has an expense ratio of 0.64% compared to the category average of 0.96%. From a cost perspective, MPGFX is actually cheaper than its peers.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Bottom Line
Overall, Mairs & Power Growth Fund ( MPGFX ) has a high Zacks Mutual Fund rank, similar performance, average downside risk, and lower fees compared to its peers.
Don't stop here for your research on Large Cap Blend 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 MPGFX 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.