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Is Columbia Global Technology Growth Z (CMTFX) a Strong Mutual Fund Pick Right Now?
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If you have been looking for Sector - Tech funds, a place to start could be Columbia Global Technology Growth Z (CMTFX - Free Report) . CMTFX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that CMTFX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.
History of Fund/Manager
Columbia is responsible for CMTFX, and the company is based out of Kansas City, MO. Columbia Global Technology Growth Z debuted in November of 2000. Since then, CMTFX has accumulated assets of about $1.29 billion, according to the most recently available information. Rahul Narang is the fund's current manager and has held that role since July of 2012.
Performance
Of course, investors look for strong performance in funds. CMTFX has a 5-year annualized total return of 20.18% and it sits 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 10.03%, 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, CMTFX's standard deviation comes in at 24.74%, compared to the category average of 0%. Looking at the past 5 years, the fund's standard deviation is 22.91% compared to the category average of 9%. 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 1.15, so it is likely going to be more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a positive alpha over the past 5 years of 3.46, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, CMTFX is a no load fund. It has an expense ratio of 0.93% compared to the category average of 30%. Looking at the fund from a cost perspective, CMTFX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Columbia Global Technology Growth Z ( CMTFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Columbia Global Technology Growth Z ( CMTFX ) looks like a good potential choice for investors right now.
Want even more information about CMTFX? 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. 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 Columbia Global Technology Growth Z (CMTFX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Sector - Tech funds, a place to start could be Columbia Global Technology Growth Z (CMTFX - Free Report) . CMTFX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that CMTFX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.
History of Fund/Manager
Columbia is responsible for CMTFX, and the company is based out of Kansas City, MO. Columbia Global Technology Growth Z debuted in November of 2000. Since then, CMTFX has accumulated assets of about $1.29 billion, according to the most recently available information. Rahul Narang is the fund's current manager and has held that role since July of 2012.
Performance
Of course, investors look for strong performance in funds. CMTFX has a 5-year annualized total return of 20.18% and it sits 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 10.03%, 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, CMTFX's standard deviation comes in at 24.74%, compared to the category average of 0%. Looking at the past 5 years, the fund's standard deviation is 22.91% compared to the category average of 9%. 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 1.15, so it is likely going to be more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a positive alpha over the past 5 years of 3.46, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, CMTFX is a no load fund. It has an expense ratio of 0.93% compared to the category average of 30%. Looking at the fund from a cost perspective, CMTFX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Columbia Global Technology Growth Z ( CMTFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Columbia Global Technology Growth Z ( CMTFX ) looks like a good potential choice for investors right now.
Want even more information about CMTFX? 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. 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.