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If investors are looking at the Mutual Fund Bond fund category, American Funds Tax-Aware Conservative Growth and Income F-1 (TAIFX - Free Report) could be a potential option. TAIFX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
American Funds is responsible for TAIFX, and the company is based out of Los Angeles, CA. American Funds Tax-Aware Conservative Growth and Income F-1 made its debut in May of 2012, and since then, TAIFX has accumulated about $251 million in assets, per the most up-to-date date available. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. TAIFX has a 5-year annualized total return of 4.52% and it sits 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 3.31%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. Over the past three years, TAIFX's standard deviation comes in at 10.28%, compared to the category average of 13.62%. The fund's standard deviation over the past 5 years is 9.87% compared to the category average of 14.17%. This makes the fund less volatile than its peers over the past half-decade.
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, TAIFX is a no load fund. It has an expense ratio of 0.38% compared to the category average of 0.91%. So, TAIFX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $250; each subsequent investment needs to be at least $50.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, American Funds Tax-Aware Conservative Growth and Income F-1 ( TAIFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, American Funds Tax-Aware Conservative Growth and Income F-1 ( TAIFX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds 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 TAIFX a Strong Bond Fund Right Now?
If investors are looking at the Mutual Fund Bond fund category, American Funds Tax-Aware Conservative Growth and Income F-1 (TAIFX - Free Report) could be a potential option. TAIFX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
American Funds is responsible for TAIFX, and the company is based out of Los Angeles, CA. American Funds Tax-Aware Conservative Growth and Income F-1 made its debut in May of 2012, and since then, TAIFX has accumulated about $251 million in assets, per the most up-to-date date available. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. TAIFX has a 5-year annualized total return of 4.52% and it sits 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 3.31%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. Over the past three years, TAIFX's standard deviation comes in at 10.28%, compared to the category average of 13.62%. The fund's standard deviation over the past 5 years is 9.87% compared to the category average of 14.17%. This makes the fund less volatile than its peers over the past half-decade.
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, TAIFX is a no load fund. It has an expense ratio of 0.38% compared to the category average of 0.91%. So, TAIFX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $250; each subsequent investment needs to be at least $50.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, American Funds Tax-Aware Conservative Growth and Income F-1 ( TAIFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, American Funds Tax-Aware Conservative Growth and Income F-1 ( TAIFX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds 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.