Any investors hoping to find a Small Cap Growth fund could think about starting with JPMorgan Small Cap Growth Fund A (PGSGX Quick QuotePGSGX - Free Report) . PGSGX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

Objective

PGSGX is one of many different Small Cap Growth funds to choose from. Small Cap Growth mutual funds build portfolios around stocks with markets caps under $2 billion and large growth opportunities. Additionally, these portfolios typically highlight smaller companies in promising markets and industries.

History of Fund/Manager

PGSGX finds itself in the J.P. Morgan family, based out of Boston, MA. JPMorgan Small Cap Growth Fund A made its debut in July of 1991, and since then, PGSGX has accumulated about $331.54 million in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.

Performance

Of course, investors look for strong performance in funds. PGSGX has a 5-year annualized total return of 5.29% and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -4.72%, 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. PGSGX's standard deviation over the past three years is 23.9% compared to the category average of 15.34%. The fund's standard deviation over the past 5 years is 25.3% compared to the category average of 16.35%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.18, the fund 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. The fund has produced a negative alpha over the past 5 years of -8.79, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

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, PGSGX is a load fund. It has an expense ratio of 1.24% compared to the category average of 0.98%. Looking at the fund from a cost perspective, PGSGX is actually more expensive than its peers.

Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50

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, worse downside risk, and higher fees, JPMorgan Small Cap Growth Fund A ( PGSGX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.

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