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Is Federated MDT Small Cap Growth Fund A (QASGX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is Federated MDT Small Cap Growth Fund A (QASGX - Free Report) . QASGX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Federated is based in Pittsburgh, PA, and is the manager of QASGX. Federated MDT Small Cap Growth Fund A debuted in September of 2005. Since then, QASGX has accumulated assets of about $86.79 million, according to the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 5.98%, and it sits in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 10.5%, 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. The standard deviation of QASGX over the past three years is 27.22% compared to the category average of 19.54%. Over the past 5 years, the standard deviation of the fund is 24.87% compared to the category average of 17.38%. 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 1.19, so it is likely going to be 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 -3.97, 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 mostly on equities that are traded in the United States.
The mutual fund currently has 95.93% of its holdings in stocks, and these companies have an average market capitalization of $2.05 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Health
Finance
With turnover at about 140%, this fund makes more trades per year than the comparable average.
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, QASGX is a load fund. It has an expense ratio of 1.13% compared to the category average of 1.19%. Looking at the fund from a cost perspective, QASGX is actually cheaper than its peers.
While the minimum initial investment for the product is $1,500, investors should also note that each subsequent investment needs to be at least $100.
Bottom Line
Overall, Federated MDT Small Cap Growth Fund A ( QASGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, this fund looks like a great potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is Federated MDT Small Cap Growth Fund A (QASGX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is Federated MDT Small Cap Growth Fund A (QASGX - Free Report) . QASGX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Federated is based in Pittsburgh, PA, and is the manager of QASGX. Federated MDT Small Cap Growth Fund A debuted in September of 2005. Since then, QASGX has accumulated assets of about $86.79 million, according to the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 5.98%, and it sits in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 10.5%, 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. The standard deviation of QASGX over the past three years is 27.22% compared to the category average of 19.54%. Over the past 5 years, the standard deviation of the fund is 24.87% compared to the category average of 17.38%. 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 1.19, so it is likely going to be 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 -3.97, 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 mostly on equities that are traded in the United States.
The mutual fund currently has 95.93% of its holdings in stocks, and these companies have an average market capitalization of $2.05 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Health
- Finance
With turnover at about 140%, this fund makes more trades per year than the comparable average.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, QASGX is a load fund. It has an expense ratio of 1.13% compared to the category average of 1.19%. Looking at the fund from a cost perspective, QASGX is actually cheaper than its peers.
While the minimum initial investment for the product is $1,500, investors should also note that each subsequent investment needs to be at least $100.
Bottom Line
Overall, Federated MDT Small Cap Growth Fund A ( QASGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, this fund looks like a great potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.