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Is MFS Growth Fund A (MFEGX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Large Cap Growth fund? MFS Growth Fund A (MFEGX - Free Report) is a potential starting point. MFEGX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
MFEGX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
MFS is based in Boston, MA, and is the manager of MFEGX. Since MFS Growth Fund A made its debut in December of 1986, MFEGX has garnered more than $7.75 billion in assets. Eric B. Fischman is the fund's current manager and has held that role since April of 2002.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. MFEGX has a 5-year annualized total return of 18.71% and is 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 21.41%, 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. Over the past three years, MFEGX's standard deviation comes in at 18.24%, compared to the category average of 15.5%. Over the past 5 years, the standard deviation of the fund is 15.17% compared to the category average of 13.14%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.92, the fund is likely to be less volatile than the market average. 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 positive alpha of 5.21, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, MFEGX is a load fund. It has an expense ratio of 0.87% compared to the category average of 1.04%. So, MFEGX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50.
Bottom Line
Overall, MFS Growth Fund A ( MFEGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, MFS Growth Fund A ( MFEGX ) looks like a good potential choice for investors right now.
Want even more information about MFEGX? 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. 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 MFS Growth Fund A (MFEGX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Large Cap Growth fund? MFS Growth Fund A (MFEGX - Free Report) is a potential starting point. MFEGX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
MFEGX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
MFS is based in Boston, MA, and is the manager of MFEGX. Since MFS Growth Fund A made its debut in December of 1986, MFEGX has garnered more than $7.75 billion in assets. Eric B. Fischman is the fund's current manager and has held that role since April of 2002.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. MFEGX has a 5-year annualized total return of 18.71% and is 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 21.41%, 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. Over the past three years, MFEGX's standard deviation comes in at 18.24%, compared to the category average of 15.5%. Over the past 5 years, the standard deviation of the fund is 15.17% compared to the category average of 13.14%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.92, the fund is likely to be less volatile than the market average. 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 positive alpha of 5.21, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, MFEGX is a load fund. It has an expense ratio of 0.87% compared to the category average of 1.04%. So, MFEGX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50.
Bottom Line
Overall, MFS Growth Fund A ( MFEGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, MFS Growth Fund A ( MFEGX ) looks like a good potential choice for investors right now.
Want even more information about MFEGX? 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. 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.