If investors are looking at the Mutual Fund Equity Report fund category, Columbia Large Cap Enhanced Core A (NMIAX Quick QuoteNMIAX - Free Report) could be a potential option. NMIAX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

NMIAX is a part of the Columbia family of funds, a company based out of Kansas City, MO. Columbia Large Cap Enhanced Core A debuted in July of 1996. Since then, NMIAX has accumulated assets of about $66.09 million, according to the most recently available information. Raghavendran Sivaraman is the fund's current manager and has held that role since December of 2019.

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 17.45%, and it sits 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 18.33%, 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. Compared to the category average of 15.82%, the standard deviation of NMIAX over the past three years is 19.07%. Looking at the past 5 years, the fund's standard deviation is 15.8% compared to the category average of 13.04%. 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 1.02, which means it is hypothetically as volatile as the market at large. 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. With a negative alpha of -1.54, managers in this portfolio find it difficult to pick 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 primarily on equities that are traded in the United States.

Currently, this mutual fund is holding 87.79% stock in stocks, with an average market capitalization of $438.39 billion. The fund has the heaviest exposure to the following market sectors:

1. Technology
2. Finance
3. Retail Trade

With turnover at about 81%, this fund makes more traders than comparable funds in a given year.

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, NMIAX is a no load fund. It has an expense ratio of 0.84% compared to the category average of 0.95%. NMIAX is actually cheaper than its peers when you consider factors like cost.

This fund requires a minimum initial investment of $2,000, while there is no minimum for each subsequent investment.

Bottom Line

Overall, Columbia Large Cap Enhanced Core A ( NMIAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Columbia Large Cap Enhanced Core A ( NMIAX ) looks like a good potential choice for investors right now.

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