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Is Columbia Global Technology Growth Z (CMTFX) a Strong Mutual Fund Pick Right Now?
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If you're looking for a Sector - Tech fund category, then a potential option is Columbia Global Technology Growth Z (CMTFX - Free Report) . CMTFX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Sector - Tech funds is an area filled with options, and CMTFX is one of them. Sector - Tech mutual funds allow investors to own a stake in a notoriously volatile sector with a much more diversified approach. Tech companies can be in any number of industries such as semiconductors, software, internet, networking just to name a few.
History of Fund/Manager
CMTFX is a part of the Columbia family of funds, a company based out of Kansas City, MO. Columbia Global Technology Growth Z made its debut in November of 2000, and since then, CMTFX has accumulated about $1.66 billion in assets, per the most up-to-date date available. The fund is currently managed by Rahul Narang who has been in charge of the fund since July of 2012.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 18.09%, and it sits in the top 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 25.87%, 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. Compared to the category average of 15.92%, the standard deviation of CMTFX over the past three years is 21.63%. Looking at the past 5 years, the fund's standard deviation is 22.21% compared to the category average of 15.55%. 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 1.24, which means it is hypothetically more volatile than the market at large. 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 -0.11, which shows that 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 largely on equities that are traded in the United States.
The mutual fund currently has 97.52% of its holdings in stocks, which have an average market capitalization of $679.38 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Turnover is about 6%, so those in charge of the fund make 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, CMTFX is a no load fund. It has an expense ratio of 0.91% compared to the category average of 1.01%. So, CMTFX is actually cheaper than its peers from a cost perspective.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, Columbia Global Technology Growth Z ( CMTFX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Columbia Global Technology Growth Z ( CMTFX ) looks like a somewhat average choice for investors right now.
This could just be the start of your research on CMTFX in the Sector - Tech 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is Columbia Global Technology Growth Z (CMTFX) a Strong Mutual Fund Pick Right Now?
If you're looking for a Sector - Tech fund category, then a potential option is Columbia Global Technology Growth Z (CMTFX - Free Report) . CMTFX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Sector - Tech funds is an area filled with options, and CMTFX is one of them. Sector - Tech mutual funds allow investors to own a stake in a notoriously volatile sector with a much more diversified approach. Tech companies can be in any number of industries such as semiconductors, software, internet, networking just to name a few.
History of Fund/Manager
CMTFX is a part of the Columbia family of funds, a company based out of Kansas City, MO. Columbia Global Technology Growth Z made its debut in November of 2000, and since then, CMTFX has accumulated about $1.66 billion in assets, per the most up-to-date date available. The fund is currently managed by Rahul Narang who has been in charge of the fund since July of 2012.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 18.09%, and it sits in the top 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 25.87%, 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. Compared to the category average of 15.92%, the standard deviation of CMTFX over the past three years is 21.63%. Looking at the past 5 years, the fund's standard deviation is 22.21% compared to the category average of 15.55%. 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 1.24, which means it is hypothetically more volatile than the market at large. 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 -0.11, which shows that 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 largely on equities that are traded in the United States.
The mutual fund currently has 97.52% of its holdings in stocks, which have an average market capitalization of $679.38 billion. The fund has the heaviest exposure to the following market sectors:
Turnover is about 6%, so those in charge of the fund make 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, CMTFX is a no load fund. It has an expense ratio of 0.91% compared to the category average of 1.01%. So, CMTFX is actually cheaper than its peers from a cost perspective.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, Columbia Global Technology Growth Z ( CMTFX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Columbia Global Technology Growth Z ( CMTFX ) looks like a somewhat average choice for investors right now.
This could just be the start of your research on CMTFX in the Sector - Tech 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.