There are plenty of choices in the Large Cap Growth category, but where should you start your research? Well, one fund that you should consider investigating is Parnassus Endeavor Investor (PARWX Quick QuotePARWX - Free Report) . PARWX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

Objective

We classify PARWX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.

History of Fund/Manager

Parnassus is based in San Francisco, CA, and is the manager of PARWX. Parnassus Endeavor Investor made its debut in April of 2005, and since then, PARWX has accumulated about $2.98 billion in assets, per the most up-to-date date available. The fund is currently managed by Billy Hwan who has been in charge of the fund since May 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 15.37%, and it sits 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 10.9%, 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. The standard deviation of PARWX over the past three years is 17.26% compared to the category average of 15.09%. Over the past 5 years, the standard deviation of the fund is 18.11% compared to the category average of 14.61%. 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 0.99, which means it is hypothetically as volatile as 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. With a negative alpha of -0.05, 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 primarily on equities that are traded in the United States.

This fund is currently holding about 95.32% in stocks, with an average market capitalization of $252.40 billion. The fund has the heaviest exposure to the following market sectors:

• Technology
• Finance
• Industrial Cyclical

With turnover at about 24.08%, this fund makes fewer trades than the average comparable fund.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, PARWX is a no load fund. It has an expense ratio of 0.88% compared to the category average of 0.93%. Looking at the fund from a cost perspective, PARWX is actually cheaper than its peers.

Investors should also note that the minimum initial investment for the product is $2,000 and that each subsequent investment needs to be at $50.

Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.

Bottom Line

Overall, Parnassus Endeavor Investor ( PARWX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Parnassus Endeavor Investor ( PARWX ) looks like a somewhat average choice for investors right now.

For additional information on this product, or to compare it to other mutual funds in the Large Cap Growth, make sure to go to www.zacks.com/funds/mutual-funds 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.