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Is MFS Technology Fund A (MTCAX) a Strong Mutual Fund Pick Right Now?
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Have you been searching for a Sector - Tech fund? You might want to begin with MFS Technology Fund A (MTCAX - Free Report) . MTCAX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
MTCAX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
MFS is responsible for MTCAX, and the company is based out of Boston, MA. Since MFS Technology Fund A made its debut in January of 1997, MTCAX has garnered more than $808.19 million in assets. Matthew Sabel is the fund's current manager and has held that role since May of 2011.
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 24.89%, and is 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 21.97%, which places it in the middle 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, MTCAX's standard deviation comes in at 20.56%, compared to the category average of 15.93%. The fund's standard deviation over the past 5 years is 17.41% compared to the category average of 13.22%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1, the fund is likely to be as volatile as the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. MTCAX has generated a positive alpha over the past five years of 7.14, demonstrating that 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, MTCAX is a load fund. It has an expense ratio of 1.13% compared to the category average of 1.35%. Looking at the fund from a cost perspective, MTCAX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, MFS Technology Fund A ( MTCAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, MFS Technology Fund A ( MTCAX ) looks like a somewhat average choice for investors right now.
For additional information on the Sector - Tech area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into MTCAX too 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 MFS Technology Fund A (MTCAX) a Strong Mutual Fund Pick Right Now?
Have you been searching for a Sector - Tech fund? You might want to begin with MFS Technology Fund A (MTCAX - Free Report) . MTCAX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
MTCAX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
MFS is responsible for MTCAX, and the company is based out of Boston, MA. Since MFS Technology Fund A made its debut in January of 1997, MTCAX has garnered more than $808.19 million in assets. Matthew Sabel is the fund's current manager and has held that role since May of 2011.
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 24.89%, and is 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 21.97%, which places it in the middle 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, MTCAX's standard deviation comes in at 20.56%, compared to the category average of 15.93%. The fund's standard deviation over the past 5 years is 17.41% compared to the category average of 13.22%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1, the fund is likely to be as volatile as the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. MTCAX has generated a positive alpha over the past five years of 7.14, demonstrating that 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, MTCAX is a load fund. It has an expense ratio of 1.13% compared to the category average of 1.35%. Looking at the fund from a cost perspective, MTCAX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, MFS Technology Fund A ( MTCAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, MFS Technology Fund A ( MTCAX ) looks like a somewhat average choice for investors right now.
For additional information on the Sector - Tech area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into MTCAX too 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.