On the lookout for a Large Cap Growth fund? Starting with Baron Fifth Avenue Growth Retail (BFTHX Quick QuoteBFTHX - Free Report) is one possibility. BFTHX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

We classify BFTHX 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

Baron is responsible for BFTHX, and the company is based out of New York, NY. Baron Fifth Avenue Growth Retail debuted in May of 2004. Since then, BFTHX has accumulated assets of about $123.90 million, according to the most recently available information. The fund's current manager, Alex Umansky, has been in charge of the fund since November of 2011.

Performance

Investors naturally seek funds with strong performance. BFTHX has a 5-year annualized total return of 7.48%, and is in the bottom 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 32.33%, 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. The standard deviation of BFTHX over the past three years is 24.23% compared to the category average of 13.28%. Over the past 5 years, the standard deviation of the fund is 25.94% compared to the category average of 15.32%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.41, the fund is likely to be more volatile than 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. With a negative alpha of -9.25, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

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, BFTHX is a no load fund. It has an expense ratio of 1.00% compared to the category average of 0.94%. From a cost perspective, BFTHX is actually more expensive than its peers.

While the minimum initial investment for the product is $2,000, 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, even with its comparatively weak performance, worse downside risk, and higher fees, Baron Fifth Avenue Growth Retail ( BFTHX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential 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.