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Is MFS Technology Fund A (MTCAX) a Strong Mutual Fund Pick Right Now?
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If you have been looking for Mutual Fund Equity Report fund category, a potential starting could be MFS Technology Fund A (MTCAX - Free Report) . MTCAX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
MFS is responsible for MTCAX, and the company is based out of Boston, MA. MFS Technology Fund A made its debut in January of 1997, and since then, MTCAX has accumulated about $610.42 million in assets, per the most up-to-date date available. 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 in particular has delivered a 5-year annualized total return of 14.08%, 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 12.1%, 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. Compared to the category average of 16.23%, the standard deviation of MTCAX over the past three years is 20.96%. Looking at the past 5 years, the fund's standard deviation is 19.61% compared to the category average of 14.32%. 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 1.06, which means it is hypothetically more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a positive alpha of 0.38, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring 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 largely on equities that are traded in the United States.
Right now, 98.03% of this mutual fund's holdings are stocks, which have an average market capitalization of $644.79 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
Turnover is 40%, which means, on average, the fund makes fewer trades than the average comparable fund.
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, MTCAX is a load fund. It has an expense ratio of 1.11% compared to the category average of 1.29%. MTCAX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to 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 similar performance, worse downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
Your research on the Mutual Fund Equity Report 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. 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?
If you have been looking for Mutual Fund Equity Report fund category, a potential starting could be MFS Technology Fund A (MTCAX - Free Report) . MTCAX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
MFS is responsible for MTCAX, and the company is based out of Boston, MA. MFS Technology Fund A made its debut in January of 1997, and since then, MTCAX has accumulated about $610.42 million in assets, per the most up-to-date date available. 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 in particular has delivered a 5-year annualized total return of 14.08%, 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 12.1%, 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. Compared to the category average of 16.23%, the standard deviation of MTCAX over the past three years is 20.96%. Looking at the past 5 years, the fund's standard deviation is 19.61% compared to the category average of 14.32%. 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 1.06, which means it is hypothetically more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a positive alpha of 0.38, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring 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 largely on equities that are traded in the United States.
Right now, 98.03% of this mutual fund's holdings are stocks, which have an average market capitalization of $644.79 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
Turnover is 40%, which means, on average, the fund makes fewer trades than the average comparable fund.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, MTCAX is a load fund. It has an expense ratio of 1.11% compared to the category average of 1.29%. MTCAX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to 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 similar performance, worse downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
Your research on the Mutual Fund Equity Report 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. 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.