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Is Columbia Global Technology Growth Z (CMTFX) a Strong Mutual Fund Pick Right Now?
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Sector - Tech fund seekers should consider taking a look at Columbia Global Technology Growth Z (CMTFX - Free Report) . CMTFX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that CMTFX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.
History of Fund/Manager
Columbia is based in Kansas City, MO, and is the manager of CMTFX. Since Columbia Global Technology Growth Z made its debut in November of 2000, CMTFX has garnered more than $1.28 billion in assets. Rahul Narang is the fund's current manager and has held that role since July of 2012.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 29.82%, and it sits 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 24.71%, 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 16.48%, the standard deviation of CMTFX over the past three years is 20.85%. Over the past 5 years, the standard deviation of the fund is 17.8% compared to the category average of 13.96%. 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 1.06, so it is likely going to be 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. CMTFX's 5-year performance has produced a positive alpha of 11.36, which means managers in this portfolio are skilled in picking 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, CMTFX is a no load fund. It has an expense ratio of 0.97% compared to the category average of 1.37%. From a cost perspective, CMTFX is actually cheaper than its peers.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Columbia Global Technology Growth Z ( CMTFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Columbia Global Technology Growth Z ( CMTFX ) looks like a good potential choice for investors right now.
This could just be the start of your research on CMTFXin the Sector - Tech category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well 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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Is Columbia Global Technology Growth Z (CMTFX) a Strong Mutual Fund Pick Right Now?
Sector - Tech fund seekers should consider taking a look at Columbia Global Technology Growth Z (CMTFX - Free Report) . CMTFX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that CMTFX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.
History of Fund/Manager
Columbia is based in Kansas City, MO, and is the manager of CMTFX. Since Columbia Global Technology Growth Z made its debut in November of 2000, CMTFX has garnered more than $1.28 billion in assets. Rahul Narang is the fund's current manager and has held that role since July of 2012.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 29.82%, and it sits 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 24.71%, 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 16.48%, the standard deviation of CMTFX over the past three years is 20.85%. Over the past 5 years, the standard deviation of the fund is 17.8% compared to the category average of 13.96%. 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 1.06, so it is likely going to be 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. CMTFX's 5-year performance has produced a positive alpha of 11.36, which means managers in this portfolio are skilled in picking 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, CMTFX is a no load fund. It has an expense ratio of 0.97% compared to the category average of 1.37%. From a cost perspective, CMTFX is actually cheaper than its peers.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Columbia Global Technology Growth Z ( CMTFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Columbia Global Technology Growth Z ( CMTFX ) looks like a good potential choice for investors right now.
This could just be the start of your research on CMTFXin the Sector - Tech category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well 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.