Any investors hoping to find a Mid Cap Growth fund might consider looking past Ave Maria Growth Fund (AVEGX Quick QuoteAVEGX - Free Report) . AVEGX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

Objective

Zacks categorizes AVEGX as Mid Cap Growth, a segment packed with options. Mid Cap Growth mutual funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. A firm is typically considered to be a growth stock if it consistently posts impressive sales and/or earnings growth.

History of Fund/Manager

Ave Maria is based in Plymouth, MI, and is the manager of AVEGX. Since Ave Maria Growth Fund made its debut in May of 2003, AVEGX has garnered more than $1.08 billion in assets. Adam Gaglio is the fund's current manager and has held that role since July of 2019.

Performance

Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 11.59%, and it sits in the bottom 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 6.81%, which places it in the bottom 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. The standard deviation of AVEGX over the past three years is 20.26% compared to the category average of 20.96%. The fund's standard deviation over the past 5 years is 20.43% compared to the category average of 20.86%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. AVEGX has a 5-year beta of 1.08, which means it is likely to be more volatile than the market average. 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 -4.46, 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, AVEGX is a no load fund. It has an expense ratio of 0.91% compared to the category average of 0.93%. From a cost perspective, AVEGX is actually cheaper than its peers.

Investors need to be aware that with this product, the minimum initial investment is $2,500; 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, even with its comparatively weak performance, average downside risk, and lower fees, Ave Maria Growth Fund ( AVEGX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.

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