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Is Parnassus Endeavor Fund (PARWX) a Strong Mutual Fund Pick Right Now?

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Large Cap Growth fund seekers may want to consider taking a look at Parnassus Endeavor Fund (PARWX - Free Report) . PARWX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.

Objective

We classify PARWX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.

History of Fund/Manager

PARWX finds itself in the Parnassus family, based out of San Francisco, CA. Parnassus Endeavor Fund made its debut in April of 2005, and since then, PARWX has accumulated about $1.93 billion in assets, per the most up-to-date date available. The fund is currently managed by Billy Hwan who has been in charge of the fund since May of 2018.

Performance

Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 18.55%, and it sits 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 11.86%, 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. PARWX's standard deviation over the past three years is 24.83% compared to the category average of 17.24%. Looking at the past 5 years, the fund's standard deviation is 20.08% compared to the category average of 14.34%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.22, which means it is hypothetically more 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. PARWX's 5-year performance has produced a negative alpha of -0.3, 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, PARWX is a no load fund. It has an expense ratio of 0.95% compared to the category average of 1.03%. Looking at the fund from a cost perspective, PARWX is actually cheaper than its peers.

Investors should also note that the minimum initial investment for the product is $2,000 and that each subsequent investment needs to be at $50.

Bottom Line

Overall, Parnassus Endeavor Fund ( PARWX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.

Want even more information about PARWX? 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. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.


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