Any investors hoping to find a Mutual Fund Equity Report fund could think about starting with Virtus KAR Small-Cap Growth I (PXSGX Quick QuotePXSGX - Free Report) . PXSGX bears 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

Virtus Funds is based in Hartford, CT, and is the manager of PXSGX. Since Virtus KAR Small-Cap Growth I made its debut in June of 2006, PXSGX has garnered more than $3.12 billion in assets. The fund is currently managed by Todd Beiley who has been in charge of the fund since April of 2008.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. PXSGX has a 5-year annualized total return of 14.06% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 5.84%, 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. PXSGX's standard deviation over the past three years is 21.44% compared to the category average of 18.16%. The fund's standard deviation over the past 5 years is 19.67% compared to the category average of 16.21%. 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 0.88, so it is likely going to be less 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. PXSGX's 5-year performance has produced a positive alpha of 3.81, which means 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 primarily on equities that are traded in the United States.

This fund is currently holding about 93.03% stock in stocks, with an average market capitalization of $6.34 billion. The fund has the heaviest exposure to the following market sectors:

1. Technology
2. Finance
3. Other

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, PXSGX is a no load fund. It has an expense ratio of 1.06% compared to the category average of 1.20%. PXSGX is actually cheaper than its peers when you consider factors like cost.

Investors need to be aware that with this product, the minimum initial investment is $100,000; each subsequent investment has no minimum amount.

Bottom Line

Overall, Virtus KAR Small-Cap Growth I ( PXSGX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.

For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into PXSGX too for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.