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Is MSIF Global Opportunity Portfolio A (MGGPX) a Strong Mutual Fund Pick Right Now?

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On the lookout for a Mutual Fund Equity Report fund? Starting with MSIF Global Opportunity Portfolio A (MGGPX - Free Report) should not be a possibility at this time. MGGPX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.

History of Fund/Manager

MGGPX finds itself in the MorgStanley family, based out of New York, NY. MSIF Global Opportunity Portfolio A debuted in May of 2010. Since then, MGGPX has accumulated assets of about $779.29 million, according to the most recently available information. The fund's current manager, Kristian Heugh, has been in charge of the fund since May of 2010.

Performance

Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 4.08%, and is 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 1.57%, 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. MGGPX's standard deviation over the past three years is 26.9% compared to the category average of 18.2%. The fund's standard deviation over the past 5 years is 22.99% compared to the category average of 15.81%. 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. 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 -4.94, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

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, MGGPX is a load fund. It has an expense ratio of 1.25% compared to the category average of 1.10%. MGGPX is actually more expensive than its peers when you consider factors like cost.

This fund requires a minimum initial investment of $1,000, while there is no minimum for each subsequent investment.

Bottom Line

Overall, MSIF Global Opportunity Portfolio A ( MGGPX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and higher fees, this fund looks like a somewhat weak 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.


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