Having trouble finding a Global - Equity fund? Well, American Funds New Perspective F1 (NPFFX Quick QuoteNPFFX - Free Report) would not be a good potential starting point right now. NPFFX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

Objective

We note that NPFFX is a Global - Equity option, an investment area loaded with different options. While Global - Equity mutual funds invest their assets in large markets-think the U.S., Europe, and Japan-they aren't limited by geography. Their investment technique is one that leverages the global economy in order to offer stable returns.

History of Fund/Manager

American Funds is responsible for NPFFX, and the company is based out of Los Angeles, CA. Since American Funds New Perspective F1 made its debut in March of 1973, NPFFX has garnered more than $1.74 billion in assets. The fund is currently managed by a team of investment professionals.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 7.9%, and is in the middle 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 17.38%, 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 10.99%, the standard deviation of NPFFX over the past three years is 12.55%. The standard deviation of the fund over the past 5 years is 15.94% compared to the category average of 12.85%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 1, so investors should note that it is hypothetically as volatile as the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. NPFFX's 5-year performance has produced a negative alpha of -4.59, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

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, NPFFX is a no load fund. It has an expense ratio of 0.78% compared to the category average of 0.94%. Looking at the fund from a cost perspective, NPFFX is actually cheaper than its peers.

This fund requires a minimum initial investment of $250, and each subsequent investment should be at least $50.

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

Bottom Line

Overall, American Funds New Perspective F1 ( NPFFX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, American Funds New Perspective F1 ( NPFFX ) looks like a somewhat weak choice for investors right now.

For additional information on the Global - Equity 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 NPFFX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.