If investors are looking at the Mutual Fund Equity Report fund category, make sure to pass over Motley Fool Great America Fund . TMFGX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Motley Fool is responsible for TMFGX, and the company is based out of Providence, RI. The Motley Fool Great America Fund made its debut in November of 2010 and TMFGX has managed to accumulate roughly $280.50 million in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. TMFGX has a 5-year annualized total return of 19.36% and is in the middle 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 21.64%, which places it in the bottom 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. TMFGX's standard deviation over the past three years is 20.11% compared to the category average of 19.11%. The fund's standard deviation over the past 5 years is 18.15% compared to the category average of 15.58%. 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. TMFGX has a 5-year beta of 1.01, which means it is likely to be as volatile as 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. TMFGX's 5-year performance has produced a positive alpha of 0.69, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
Currently, this mutual fund is holding 79.37% stock in stocks, and these companies have an average market capitalization of $14.71 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
- Finance
- Non-Durable
Turnover is about 20%, so those in charge of the fund make fewer trades than the average comparable fund.
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, TMFGX is a no load fund. It has an expense ratio of 1.04% compared to the category average of 1.17%. TMFGX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $500 and that each subsequent investment needs to be at $50.
Bottom Line
Overall, Motley Fool Great America Fund ( TMFGX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Don't stop here for your research on Mutual Fund Equity Report 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 TMFGX to its peers as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is Motley Fool Great America Fund (TMFGX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Mutual Fund Equity Report fund category, make sure to pass over Motley Fool Great America Fund . TMFGX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Motley Fool is responsible for TMFGX, and the company is based out of Providence, RI. The Motley Fool Great America Fund made its debut in November of 2010 and TMFGX has managed to accumulate roughly $280.50 million in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. TMFGX has a 5-year annualized total return of 19.36% and is in the middle 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 21.64%, which places it in the bottom 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. TMFGX's standard deviation over the past three years is 20.11% compared to the category average of 19.11%. The fund's standard deviation over the past 5 years is 18.15% compared to the category average of 15.58%. 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. TMFGX has a 5-year beta of 1.01, which means it is likely to be as volatile as 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. TMFGX's 5-year performance has produced a positive alpha of 0.69, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
Currently, this mutual fund is holding 79.37% stock in stocks, and these companies have an average market capitalization of $14.71 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
- Finance
- Non-Durable
Turnover is about 20%, so those in charge of the fund make fewer trades than the average comparable fund.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, TMFGX is a no load fund. It has an expense ratio of 1.04% compared to the category average of 1.17%. TMFGX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $500 and that each subsequent investment needs to be at $50.
Bottom Line
Overall, Motley Fool Great America Fund ( TMFGX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Don't stop here for your research on Mutual Fund Equity Report 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 TMFGX to its peers as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.