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Is Parnassus Investor (PARNX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Mutual Fund Equity Report fund? Parnassus Investor (PARNX - Free Report) is a possible starting point. PARNX 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
Parnassus is responsible for PARNX, and the company is based out of San Francisco, CA. Parnassus Investor made its debut in May of 1985, and since then, PARNX has accumulated about $2.05 billion in assets, per the most up-to-date date available. Ian Sexsmith is the fund's current manager and has held that role since May of 2013.
Performance
Investors naturally seek funds with strong performance. PARNX has a 5-year annualized total return of 3.16% and is in the bottom 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 0.4%, 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 20.96%, the standard deviation of PARNX over the past three years is 23.69%. The fund's standard deviation over the past 5 years is 20.54% compared to the category average of 18.47%. 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. PARNX has a 5-year beta of 1.02, which means it is likely to be as volatile as the market average. 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. PARNX's 5-year performance has produced a negative alpha of -6.91, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining 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 87.38% stock in stocks, and these companies have an average market capitalization of $29.10 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
With turnover at about 58.68%, this fund makes fewer trades than comparable funds.
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, PARNX is a no load fund. It has an expense ratio of 0.80% compared to the category average of 0.99%. PARNX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $2,000, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, Parnassus Investor ( PARNX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Parnassus Investor ( PARNX ) looks like a somewhat average choice for investors right now.
Want even more information about PARNX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is Parnassus Investor (PARNX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Mutual Fund Equity Report fund? Parnassus Investor (PARNX - Free Report) is a possible starting point. PARNX 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
Parnassus is responsible for PARNX, and the company is based out of San Francisco, CA. Parnassus Investor made its debut in May of 1985, and since then, PARNX has accumulated about $2.05 billion in assets, per the most up-to-date date available. Ian Sexsmith is the fund's current manager and has held that role since May of 2013.
Performance
Investors naturally seek funds with strong performance. PARNX has a 5-year annualized total return of 3.16% and is in the bottom 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 0.4%, 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 20.96%, the standard deviation of PARNX over the past three years is 23.69%. The fund's standard deviation over the past 5 years is 20.54% compared to the category average of 18.47%. 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. PARNX has a 5-year beta of 1.02, which means it is likely to be as volatile as the market average. 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. PARNX's 5-year performance has produced a negative alpha of -6.91, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining 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 87.38% stock in stocks, and these companies have an average market capitalization of $29.10 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
With turnover at about 58.68%, this fund makes fewer trades than comparable funds.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, PARNX is a no load fund. It has an expense ratio of 0.80% compared to the category average of 0.99%. PARNX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $2,000, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, Parnassus Investor ( PARNX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Parnassus Investor ( PARNX ) looks like a somewhat average choice for investors right now.
Want even more information about PARNX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.