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On the lookout for a Mutual Fund Bond fund? Starting with American Century CA High Yield Municipals Investor (BCHYX - Free Report) is one possibility. BCHYX has 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
American Century is responsible for BCHYX, and the company is based out of Kansas City, MO. The American Century CA High Yield Municipals Investor made its debut in December of 1986 and BCHYX has managed to accumulate roughly $740.10 million in assets, as of the most recently available information. The fund is currently managed by Joseph Gotteli who has been in charge of the fund since January of 2012.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 1.6%, 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 -0.65%, 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. BCHYX's standard deviation over the past three years is 7.11% compared to the category average of 13.19%. The fund's standard deviation over the past 5 years is 5.77% compared to the category average of 11.69%. This makes the fund less volatile than its peers over the past half-decade.
BCHYX carries a beta of 0.83, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.02, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 47 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
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, BCHYX is a no load fund. It has an expense ratio of 0.49% compared to the category average of 0.79%. So, BCHYX is actually cheaper than its peers from a cost perspective.
While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, American Century CA High Yield Municipals Investor ( BCHYX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
This could just be the start of your research on BCHYXin the Mutual Fund Bond category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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 BCHYX a Strong Bond Fund Right Now?
On the lookout for a Mutual Fund Bond fund? Starting with American Century CA High Yield Municipals Investor (BCHYX - Free Report) is one possibility. BCHYX has 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
American Century is responsible for BCHYX, and the company is based out of Kansas City, MO. The American Century CA High Yield Municipals Investor made its debut in December of 1986 and BCHYX has managed to accumulate roughly $740.10 million in assets, as of the most recently available information. The fund is currently managed by Joseph Gotteli who has been in charge of the fund since January of 2012.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 1.6%, 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 -0.65%, 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. BCHYX's standard deviation over the past three years is 7.11% compared to the category average of 13.19%. The fund's standard deviation over the past 5 years is 5.77% compared to the category average of 11.69%. This makes the fund less volatile than its peers over the past half-decade.
BCHYX carries a beta of 0.83, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.02, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 47 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
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, BCHYX is a no load fund. It has an expense ratio of 0.49% compared to the category average of 0.79%. So, BCHYX is actually cheaper than its peers from a cost perspective.
While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, American Century CA High Yield Municipals Investor ( BCHYX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
This could just be the start of your research on BCHYXin the Mutual Fund Bond category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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.