If you're looking for a Large Cap Growth fund category, then a potential option is Vanguard Capital Opportunity Fund (VHCOX Quick QuoteVHCOX - Free Report) . VHCOX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

Objective

We classify VHCOX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.

History of Fund/Manager

Vanguard Group is based in Malvern, PA, and is the manager of VHCOX. Vanguard Capital Opportunity Fund made its debut in August of 1995, and since then, VHCOX has accumulated about $1.39 billion in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.

Performance

Investors naturally seek funds with strong performance. VHCOX has a 5-year annualized total return of 14.73% and is in the middle 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 7.57%, which places it in the middle 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, VHCOX's standard deviation comes in at 16.75%, compared to the category average of 17.8%. The fund's standard deviation over the past 5 years is 17.79% compared to the category average of 18.01%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.94, the fund is likely to be less volatile than 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. With a negative alpha of -0.24, managers in this portfolio find it difficult to pick 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, VHCOX is a no load fund. It has an expense ratio of 0.43% compared to the category average of 0.94%. So, VHCOX is actually cheaper than its peers from a cost perspective.

Investors should also note, that according to our data, the fund does not have any minimum investment requirements.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Vanguard Capital Opportunity Fund ( VHCOX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Vanguard Capital Opportunity Fund ( VHCOX ) looks like a somewhat average choice for investors right now.

Don't stop here for your research on Large Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare VHCOX to its peers as well 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.