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Is Aegis Value Fund (AVALX) a Strong Mutual Fund Pick Right Now?
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If you have been looking for Small Cap Value fund category, a potential starting could be Aegis Value Fund (AVALX - Free Report) . AVALX possesses 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 Small Cap Value mutual funds is an area filled with options, such as AVALX. Small Cap Value funds invest in small companies with stock market valuation less than $2 billion. These funds offer more bang for an owner's buck, providing low P/E ratios, high dividend yields, and better-than-average P/S ratios.
History of Fund/Manager
Aegis is based in McLean, VA, and is the manager of AVALX. The Aegis Value Fund made its debut in June of 2000 and AVALX has managed to accumulate roughly $1.36 billion in assets, as of the most recently available information. The fund is currently managed by Scott L. Barbee who has been in charge of the fund since June of 2000.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 24.21%, 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 32.44%, 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 18.17%, the standard deviation of AVALX over the past three years is 17.22%. The standard deviation of the fund over the past 5 years is 21.16% compared to the category average of 20.64%. 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 0.73, which means it is hypothetically less volatile than 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. The fund has produced a positive alpha over the past 5 years of 13.77, which shows that managers in this portfolio are skilled in picking 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, AVALX is a no load fund. It has an expense ratio of 1.36% compared to the category average of 1.06%. Looking at the fund from a cost perspective, AVALX is actually more expensive than its peers.
Investors should also note that the minimum initial investment for the product is $10,000 and that each subsequent investment needs to be at $250.
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 strong performance, average downside risk, and higher fees, Aegis Value Fund ( AVALX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.
Don't stop here for your research on Small Cap Value funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare AVALX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is Aegis Value Fund (AVALX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Small Cap Value fund category, a potential starting could be Aegis Value Fund (AVALX - Free Report) . AVALX possesses 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 Small Cap Value mutual funds is an area filled with options, such as AVALX. Small Cap Value funds invest in small companies with stock market valuation less than $2 billion. These funds offer more bang for an owner's buck, providing low P/E ratios, high dividend yields, and better-than-average P/S ratios.
History of Fund/Manager
Aegis is based in McLean, VA, and is the manager of AVALX. The Aegis Value Fund made its debut in June of 2000 and AVALX has managed to accumulate roughly $1.36 billion in assets, as of the most recently available information. The fund is currently managed by Scott L. Barbee who has been in charge of the fund since June of 2000.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 24.21%, 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 32.44%, 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 18.17%, the standard deviation of AVALX over the past three years is 17.22%. The standard deviation of the fund over the past 5 years is 21.16% compared to the category average of 20.64%. 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 0.73, which means it is hypothetically less volatile than 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. The fund has produced a positive alpha over the past 5 years of 13.77, which shows that managers in this portfolio are skilled in picking 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, AVALX is a no load fund. It has an expense ratio of 1.36% compared to the category average of 1.06%. Looking at the fund from a cost perspective, AVALX is actually more expensive than its peers.
Investors should also note that the minimum initial investment for the product is $10,000 and that each subsequent investment needs to be at $250.
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 strong performance, average downside risk, and higher fees, Aegis Value Fund ( AVALX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.
Don't stop here for your research on Small Cap Value funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare AVALX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.