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Is MSIF Global Opportunity Portfolio I (MGGIX) a Strong Mutual Fund Pick Right Now?

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If investors are looking at the Global - Equity fund category, MSIF Global Opportunity Portfolio I (MGGIX - Free Report) could be a potential option. MGGIX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

We note that MGGIX is a Global - Equity option, an investment area loaded with different options. While Global - Equity mutual funds invest their assets in large markets--think the U.S., Europe, and Japan--they aren't limited by geography. Their investment technique is one that leverages the global economy in order to offer stable returns.

History of Fund/Manager

MGGIX finds itself in the MorgStanley family, based out of New York, NY. Since MSIF Global Opportunity Portfolio I made its debut in May of 2010, MGGIX has garnered more than $3.07 billion in assets. The fund is currently managed by Kristian Heugh who has been in charge of the fund since May of 2010.

Performance

Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 27.62%, 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 24.2%, 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 15.84%, the standard deviation of MGGIX over the past three years is 19.32%. Looking at the past 5 years, the fund's standard deviation is 16.41% compared to the category average of 13.19%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. MGGIX has a 5-year beta of 0.93, which means it 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 10.84, 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, MGGIX is a no load fund. It has an expense ratio of 0.91% compared to the category average of 1.14%. So, MGGIX is actually cheaper than its peers from a cost perspective.

Investors need to be aware that with this product, the minimum initial investment is $5 million; each subsequent investment has no minimum amount.

Bottom Line

Overall, MSIF Global Opportunity Portfolio I ( MGGIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

Don't stop here for your research on Global - Equity funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare MGGIX to its peers 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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