There are plenty of choices in the Large Cap Growth category, but where should you start your research? Well, one fund that may not be worth investigating is Marsico 21ST Century Fund (
MXXIX Quick Quote MXXIX - Free Report) . MXXIX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance. Objective
MXXIX 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
MXXIX finds itself in the Marsico family, based out of Denver, CO. Marsico 21ST Century Fund debuted in February of 2000. Since then, MXXIX has accumulated assets of about $355.98 million, according to the most recently available information. The fund is currently managed by Brandon Geisler who has been in charge of the fund since October of 2011.
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 19.66%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 24.33%, 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, MXXIX's standard deviation comes in at 21.81%, compared to the category average of 22.56%. The standard deviation of the fund over the past 5 years is 18.09% compared to the category average of 18.9%. This makes the fund less volatile than its peers over the past half-decade.
With a 5-year beta of 1.07, the fund is likely to be more 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 3.34, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, MXXIX is a no load fund. It has an expense ratio of 1.40% compared to the category average of 1.04%. Looking at the fund from a cost perspective, MXXIX is actually more expensive than its peers.
While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $100.
Overall, Marsico 21ST Century Fund ( MXXIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, this fund looks like a poor potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Large Cap Growth, make sure to go to
www.zacks.com/funds/mutual-funds for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.