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Is Putnam Global Technology A (PGTAX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Sector - Tech fund category, Putnam Global Technology A (PGTAX - Free Report) could be a potential option. PGTAX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
PGTAX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
PGTAX finds itself in the Putnam Funds family, based out of Canton, MA. The Putnam Global Technology A made its debut in January of 2009 and PGTAX has managed to accumulate roughly $166.36 million in assets, as of the most recently available information. The fund's current manager, Di Yao, has been in charge of the fund since December of 2012.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 22.07%, and it sits in the top 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 24.64%, which places it in the top third during this time-frame.
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. PGTAX's standard deviation over the past three years is 14.23% compared to the category average of 9.82%. Over the past 5 years, the standard deviation of the fund is 13.11% compared to the category average of 9.62%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.06, which means it is hypothetically more 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. Over the past 5 years, the fund has a positive alpha of 7.44. This means that managers in this portfolio are skilled in picking 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, PGTAX is a load fund. It has an expense ratio of 1.28% compared to the category average of 1.36%. PGTAX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $500, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Putnam Global Technology A has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Want even more information about PGTAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is Putnam Global Technology A (PGTAX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Sector - Tech fund category, Putnam Global Technology A (PGTAX - Free Report) could be a potential option. PGTAX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
PGTAX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
PGTAX finds itself in the Putnam Funds family, based out of Canton, MA. The Putnam Global Technology A made its debut in January of 2009 and PGTAX has managed to accumulate roughly $166.36 million in assets, as of the most recently available information. The fund's current manager, Di Yao, has been in charge of the fund since December of 2012.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 22.07%, and it sits in the top 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 24.64%, which places it in the top third during this time-frame.
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. PGTAX's standard deviation over the past three years is 14.23% compared to the category average of 9.82%. Over the past 5 years, the standard deviation of the fund is 13.11% compared to the category average of 9.62%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.06, which means it is hypothetically more 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. Over the past 5 years, the fund has a positive alpha of 7.44. This means that managers in this portfolio are skilled in picking 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, PGTAX is a load fund. It has an expense ratio of 1.28% compared to the category average of 1.36%. PGTAX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $500, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Putnam Global Technology A has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Want even more information about PGTAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.