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Is Royce Global Financial Services Service Class (RYFSX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Sector - Finance fund? Well, Royce Global Financial Services Service Class (RYFSX - Free Report) would not be a good potential starting point right now. RYFSX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
RYFSX is classified in the Sector - Finance segment by Zacks, and this area is full of possibilities. The financial space is notoriously large, complex, and heavily-regulated, and Sector - Finance mutual funds give investors a stable, diversified approach to investing in this industry. These funds can include everything from banks and investment giants to exchanges and insurance companies, though investors should note that interest rates could have a big impact.
History of Fund/Manager
RYFSX is a part of the Royce Funds family of funds, a company based out of New York, NY. Royce Global Financial Services Service Class debuted in January of 2004. Since then, RYFSX has accumulated assets of about $31.79 million, according to the most recently available information. Charles M. Royce is the fund's current manager and has held that role since January of 2004.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 5.29%, and is 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 7.83%, 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. Compared to the category average of 16.19%, the standard deviation of RYFSX over the past three years is 12.5%. The standard deviation of the fund over the past 5 years is 13.31% compared to the category average of 15.85%. This makes the fund less 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. RYFSX lost 51.2% in the most recent bear market and outperformed its peer group by 10.29%. This means that the fund could possibly be a better choice than its peers during a down market environment.
Investors should note that the fund has a 5-year beta of 0.97, so it is likely going to be as volatile as 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. The fund has produced a negative alpha over the past 5 years of -3.52, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, RYFSX is a no load fund. It has an expense ratio of 1.49% compared to the category average of 1.42%. RYFSX is actually more expensive than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $2,000; each subsequent investment needs to be at least $50.
Bottom Line
Overall, Royce Global Financial Services Service Class ( RYFSX ) has a low Zacks Mutual Fund rank, strong performance, average downside risk, and higher fees compared to its peers.
Your research on the Sector - Finance segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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 Royce Global Financial Services Service Class (RYFSX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Sector - Finance fund? Well, Royce Global Financial Services Service Class (RYFSX - Free Report) would not be a good potential starting point right now. RYFSX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
RYFSX is classified in the Sector - Finance segment by Zacks, and this area is full of possibilities. The financial space is notoriously large, complex, and heavily-regulated, and Sector - Finance mutual funds give investors a stable, diversified approach to investing in this industry. These funds can include everything from banks and investment giants to exchanges and insurance companies, though investors should note that interest rates could have a big impact.
History of Fund/Manager
RYFSX is a part of the Royce Funds family of funds, a company based out of New York, NY. Royce Global Financial Services Service Class debuted in January of 2004. Since then, RYFSX has accumulated assets of about $31.79 million, according to the most recently available information. Charles M. Royce is the fund's current manager and has held that role since January of 2004.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 5.29%, and is 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 7.83%, 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. Compared to the category average of 16.19%, the standard deviation of RYFSX over the past three years is 12.5%. The standard deviation of the fund over the past 5 years is 13.31% compared to the category average of 15.85%. This makes the fund less 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. RYFSX lost 51.2% in the most recent bear market and outperformed its peer group by 10.29%. This means that the fund could possibly be a better choice than its peers during a down market environment.
Investors should note that the fund has a 5-year beta of 0.97, so it is likely going to be as volatile as 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. The fund has produced a negative alpha over the past 5 years of -3.52, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, RYFSX is a no load fund. It has an expense ratio of 1.49% compared to the category average of 1.42%. RYFSX is actually more expensive than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $2,000; each subsequent investment needs to be at least $50.
Bottom Line
Overall, Royce Global Financial Services Service Class ( RYFSX ) has a low Zacks Mutual Fund rank, strong performance, average downside risk, and higher fees compared to its peers.
Your research on the Sector - Finance segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.