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Is Wells Fargo Premier Large Company Growth A (EKJAX) a Strong Mutual Fund Pick Right Now?
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If you're looking for a Large Cap Growth fund category, then a potential option is Wells Fargo Premier Large Company Growth A (EKJAX - Free Report) . EKJAX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
EKJAX is classified in the Large Cap Growth segment by Zacks, an area full of possibilities. Companies are usually considered to be large-cap if their stock market valuation is more than $10 billion. Large Cap Growth mutual funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers.
History of Fund/Manager
Wells Fargo is based in San Francisco, CA, and is the manager of EKJAX. Since Wells Fargo Premier Large Company Growth A made its debut in February of 1998, EKJAX has garnered more than $1.45 billion in assets. Thomas C. Ognar is the fund's current manager and has held that role since May of 2010.
Performance
Of course, investors look for strong performance in funds. EKJAX has a 5-year annualized total return of 21.91% and it sits in the middle 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 19.82%, 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. EKJAX's standard deviation over the past three years is 21.56% compared to the category average of 15.82%. The standard deviation of the fund over the past 5 years is 17.63% compared to the category average of 13.06%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.06, 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 3.71, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
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, EKJAX is a load fund. It has an expense ratio of 1.14% compared to the category average of 1.02%. EKJAX is actually more expensive than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $100.
Bottom Line
Overall, Wells Fargo Premier Large Company Growth A ( EKJAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, this fund looks like a somewhat average choice for investors right now.
Your research on the Large Cap Growth segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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.
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Is Wells Fargo Premier Large Company Growth A (EKJAX) a Strong Mutual Fund Pick Right Now?
If you're looking for a Large Cap Growth fund category, then a potential option is Wells Fargo Premier Large Company Growth A (EKJAX - Free Report) . EKJAX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
EKJAX is classified in the Large Cap Growth segment by Zacks, an area full of possibilities. Companies are usually considered to be large-cap if their stock market valuation is more than $10 billion. Large Cap Growth mutual funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers.
History of Fund/Manager
Wells Fargo is based in San Francisco, CA, and is the manager of EKJAX. Since Wells Fargo Premier Large Company Growth A made its debut in February of 1998, EKJAX has garnered more than $1.45 billion in assets. Thomas C. Ognar is the fund's current manager and has held that role since May of 2010.
Performance
Of course, investors look for strong performance in funds. EKJAX has a 5-year annualized total return of 21.91% and it sits in the middle 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 19.82%, 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. EKJAX's standard deviation over the past three years is 21.56% compared to the category average of 15.82%. The standard deviation of the fund over the past 5 years is 17.63% compared to the category average of 13.06%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.06, 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 3.71, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
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, EKJAX is a load fund. It has an expense ratio of 1.14% compared to the category average of 1.02%. EKJAX is actually more expensive than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $100.
Bottom Line
Overall, Wells Fargo Premier Large Company Growth A ( EKJAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, this fund looks like a somewhat average choice for investors right now.
Your research on the Large Cap Growth segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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.