If you're looking for a Small Cap Growth fund category, then a potential option is Wasatch Core Growth Fund (WGROX Quick QuoteWGROX - Free Report) . WGROX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

Objective

WGROX is part of the Small Cap Growth category, and this segment boasts an array of many other possible options. Small Cap Growth mutual funds usually focus their portfolios on stocks with large growth opportunities and a market cap of under $2 billion. These portfolios tend to feature small companies in up-and-coming industries and markets.

History of Fund/Manager

Wasatch is based in Salt Lake City, UT, and is the manager of WGROX. Since Wasatch Core Growth Fund made its debut in November of 1986, WGROX has garnered more than $1.86 billion in assets. The fund's current manager, Paul Lambert, has been in charge of the fund since January of 2005.

Performance

Investors naturally seek funds with strong performance. WGROX has a 5-year annualized total return of 15.44% and is 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 3.91%, 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. The standard deviation of WGROX over the past three years is 24.88% compared to the category average of 18.22%. Over the past 5 years, the standard deviation of the fund is 23.82% compared to the category average of 19.75%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 1.23, so investors should note that it is hypothetically more volatile than the market at large. 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. WGROX's 5-year performance has produced a negative alpha of -4.97, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.

This fund is currently holding about 78.39% in stocks, which have an average market capitalization of $7.24 billion. The fund has the heaviest exposure to the following market sectors:

• Technology
• Industrial Cyclical
• Services
• Finance
• Non-Durable

This fund's turnover is about 36%, so the fund managers are making fewer trades than the average comparable fund.

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, WGROX is a no load fund. It has an expense ratio of 1.17% compared to the category average of 1.06%. WGROX is actually more expensive than its peers when you consider factors like cost.

Investors need to be aware that with this product, the minimum initial investment is $2,000; each subsequent investment needs to be at least $100.

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 strong performance, average downside risk, and higher fees, Wasatch Core Growth Fund ( WGROX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.

This could just be the start of your research on WGROXin the Small Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.