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Is Morgan Stanley Inst Global Opp I (MGGIX) a Strong Mutual Fund Pick Right Now?
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If you have been looking for Global - Equity funds, it would not be wise to start your search with Morgan Stanley Inst Global Opp I (MGGIX - Free Report) . MGGIX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes MGGIX as Global - Equity, which is a segment packed with options. Global - Equity mutual funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. They also provide an investment technique that leverages the diverse nature of the global economy in the hopes of providing a stable return.
History of Fund/Manager
MorgStanley is based in New York, NY, and is the manager of MGGIX. Since Morgan Stanley Inst Global Opp I made its debut in May of 2010, MGGIX has garnered more than $1.63 billion in assets. The fund is currently managed by Kristian Heugh who has been in charge of the fund since May of 2010.
Performance
Investors naturally seek funds with strong performance. MGGIX has a 5-year annualized total return of 4.57%, 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 18.29%, 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. MGGIX's standard deviation over the past three years is 17.99% compared to the category average of 11.36%. Over the past 5 years, the standard deviation of the fund is 22.25% compared to the category average of 13.34%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. MGGIX has a 5-year beta of 1.25, which means it is likely to be more volatile than the market average. 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. With a negative alpha of -8.25, 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, MGGIX is a no load fund. It has an expense ratio of 0.93% compared to the category average of 0.94%. So, MGGIX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $1.00 million; 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, Morgan Stanley Inst Global Opp I ( MGGIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
This could just be the start of your research on MGGIX in the Global - Equity 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 Morgan Stanley Inst Global Opp I (MGGIX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Global - Equity funds, it would not be wise to start your search with Morgan Stanley Inst Global Opp I (MGGIX - Free Report) . MGGIX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes MGGIX as Global - Equity, which is a segment packed with options. Global - Equity mutual funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. They also provide an investment technique that leverages the diverse nature of the global economy in the hopes of providing a stable return.
History of Fund/Manager
MorgStanley is based in New York, NY, and is the manager of MGGIX. Since Morgan Stanley Inst Global Opp I made its debut in May of 2010, MGGIX has garnered more than $1.63 billion in assets. The fund is currently managed by Kristian Heugh who has been in charge of the fund since May of 2010.
Performance
Investors naturally seek funds with strong performance. MGGIX has a 5-year annualized total return of 4.57%, 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 18.29%, 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. MGGIX's standard deviation over the past three years is 17.99% compared to the category average of 11.36%. Over the past 5 years, the standard deviation of the fund is 22.25% compared to the category average of 13.34%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. MGGIX has a 5-year beta of 1.25, which means it is likely to be more volatile than the market average. 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. With a negative alpha of -8.25, 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, MGGIX is a no load fund. It has an expense ratio of 0.93% compared to the category average of 0.94%. So, MGGIX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $1.00 million; 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, Morgan Stanley Inst Global Opp I ( MGGIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
This could just be the start of your research on MGGIX in the Global - Equity 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.