Looking for a Mid Cap Growth fund? You may want to consider PGIM Jennison Mid-Cap Growth A (PEEAX Quick QuotePEEAX - Free Report) as a possible option. PEEAX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

Objective

PEEAX is part of the Mid Cap Growth section, a segment that boasts a wide array of possible selections. While Mid Cap Growth mutual funds choose companies with a stock market valuation between $2 billion and $10 billion, stocks in these funds are also expected to show broad considerable growth opportunities for investors compared to their peers. To be considered a growth stock, companies must consistently report impressive sales and/or earnings growth.

History of Fund/Manager

PEEAX is a part of the PGIM family of funds, a company based out of Providence, RI. PGIM Jennison Mid-Cap Growth A debuted in December of 1996. Since then, PEEAX has accumulated assets of about $739.13 million, according to the most recently available information. The fund is currently managed by Benjamin Bryan who has been in charge of the fund since July of 2018.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 11.98%, and it sits in the middle 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 -0.34%, 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. PEEAX's standard deviation over the past three years is 21.37% compared to the category average of 15.23%. The fund's standard deviation over the past 5 years is 21.55% compared to the category average of 16.26%. 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 1.14, which means it is hypothetically 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 negative alpha over the past 5 years of -6.92, which shows that 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.

The mutual fund currently has 80.26% of its holdings in stocks, and these companies have an average market capitalization of $30.86 billion. The fund has the heaviest exposure to the following market sectors:

• Technology
• Retail Trade

With turnover at about 61%, this fund is making fewer trades than its comparable peers.

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, PEEAX is a load fund. It has an expense ratio of 1.04% compared to the category average of 0.96%. PEEAX is actually more expensive than its peers when you consider factors like cost.

While the minimum initial investment for the product is $1,000, investors should also note that 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 similar performance, worse downside risk, and higher fees, PGIM Jennison Mid-Cap Growth A ( PEEAX ) 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 PEEAXin the Mid 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. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.