We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Columbia Large Cap Enhanced Core A (NMIAX) a Strong Mutual Fund Pick Right Now?
Read MoreHide Full Article
If investors are looking at the Large Cap Blend fund category, Columbia Large Cap Enhanced Core A (NMIAX - Free Report) could be a potential option. NMIAX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
NMIAX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a " buy and hold " mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.
History of Fund/Manager
Columbia is based in Kansas City, MO, and is the manager of NMIAX. Columbia Large Cap Enhanced Core A made its debut in July of 1996, and since then, NMIAX has accumulated about $68.03 million in assets, per the most up-to-date date available. The fund's current manager, Raghavendran Sivaraman, has been in charge of the fund since December of 2019.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 15.45%, and it sits in the top 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 12.88%, 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. Compared to the category average of 14.43%, the standard deviation of NMIAX over the past three years is 16.57%. The standard deviation of the fund over the past 5 years is 15.86% compared to the category average of 14.14%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.97, the fund is likely to be as volatile as 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. NMIAX's 5-year performance has produced a negative alpha of -0.07, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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.
As of the last filing date, the mutual fund has 88.16% of its assets in stocks, which have an average market capitalization of $454.55 billion. With turnover at about 85%, this fund makes more trades in a given year than the category average.
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, NMIAX is a no load fund. It has an expense ratio of 0.82% compared to the category average of 0.89%. NMIAX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $2,000, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Columbia Large Cap Enhanced Core A ( NMIAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Columbia Large Cap Enhanced Core A ( NMIAX ) looks like a good potential choice for investors right now.
For additional information on the Large Cap Blend area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into NMIAX too 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Columbia Large Cap Enhanced Core A (NMIAX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Large Cap Blend fund category, Columbia Large Cap Enhanced Core A (NMIAX - Free Report) could be a potential option. NMIAX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
NMIAX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a " buy and hold " mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.
History of Fund/Manager
Columbia is based in Kansas City, MO, and is the manager of NMIAX. Columbia Large Cap Enhanced Core A made its debut in July of 1996, and since then, NMIAX has accumulated about $68.03 million in assets, per the most up-to-date date available. The fund's current manager, Raghavendran Sivaraman, has been in charge of the fund since December of 2019.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 15.45%, and it sits in the top 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 12.88%, 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. Compared to the category average of 14.43%, the standard deviation of NMIAX over the past three years is 16.57%. The standard deviation of the fund over the past 5 years is 15.86% compared to the category average of 14.14%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.97, the fund is likely to be as volatile as 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. NMIAX's 5-year performance has produced a negative alpha of -0.07, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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.
As of the last filing date, the mutual fund has 88.16% of its assets in stocks, which have an average market capitalization of $454.55 billion. With turnover at about 85%, this fund makes more trades in a given year than the category average.
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, NMIAX is a no load fund. It has an expense ratio of 0.82% compared to the category average of 0.89%. NMIAX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $2,000, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Columbia Large Cap Enhanced Core A ( NMIAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Columbia Large Cap Enhanced Core A ( NMIAX ) looks like a good potential choice for investors right now.
For additional information on the Large Cap Blend area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into NMIAX too 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.