Any investors hoping to find a Mid Cap Growth fund might consider looking past Ave Maria Growth Fund (AVEGX Quick QuoteAVEGX - Free Report) . AVEGX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.

Objective

We note that AVEGX is a Mid Cap Growth fund, and this area is also loaded with many different options. Companies are usually considered growth stocks when they consistently report notable sales and/or earnings growth. Thus, Mid Cap Growth funds pick stocks--usually companies with a market cap between $2 billion and $10 billion--that demonstrate extensive growth opportunities for investors compared to their peers.

History of Fund/Manager

AVEGX finds itself in the Ave Maria family, based out of Plymouth, MI. Since Ave Maria Growth Fund made its debut in May of 2003, AVEGX has garnered more than $1.13 billion in assets. The fund's current manager, Adam Gaglio, has been in charge of the fund since July of 2019.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. AVEGX has a 5-year annualized total return of 10.66%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 21.66%, which places it in the bottom 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 AVEGX over the past three years is 15.48% compared to the category average of 16.78%. The standard deviation of the fund over the past 5 years is 17.93% compared to the category average of 19.61%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.07, the fund is likely to be more volatile than the market average. 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. AVEGX's 5-year performance has produced a negative alpha of -5.53, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, AVEGX is a no load fund. It has an expense ratio of 0.90% compared to the category average of 0.93%. AVEGX is actually cheaper than its peers when you consider factors like cost.

Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment has no minimum amount.

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

Bottom Line

Overall, even with its comparatively weak performance, average downside risk, and lower fees, Ave Maria Growth Fund ( AVEGX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.

Your research on the Mid Cap Growth segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.