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Is MassMutual Premier Global A (MGFAX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Global - Equity fund? MassMutual Premier Global A (MGFAX - Free Report) is a potential starting point. MGFAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
MGFAX is classified in the Global - Equity segment by Zacks, an area full of possibilities. Even though Global - Equity mutual funds invest in bigger markets like the U.S., Europe, and Japan, these kinds of funds aren't limited by geography. Rather, they offer an investment strategy that utilizes the global economy to provide stable returns.
History of Fund/Manager
MassMutual is based in Springfield, MA, and is the manager of MGFAX. MassMutual Premier Global A debuted in December of 2004. Since then, MGFAX has accumulated assets of about $30.77 million, according to the most recently available information. The fund's current manager, Rajeev Bhaman, has been in charge of the fund since December of 2004.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 10.6%, and is in the top 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 8.74%, 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. The standard deviation of MGFAX over the past three years is 13.24% compared to the category average of 9.25%. Over the past 5 years, the standard deviation of the fund is 12.27% compared to the category average of 9.04%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. In the most recent bear market, MGFAX lost 53.64% and underperformed comparable funds by 1.27%. This might suggest that the fund is a worse choice than its peers during a bear market.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.1, which means it is hypothetically more volatile than 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. The fund has produced a negative alpha over the past 5 years of -3.07, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, MGFAX is a load fund. It has an expense ratio of 1.41% compared to the category average of 1.20%. So, MGFAX is actually more expensive than its peers from a cost perspective.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, MassMutual Premier Global A has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, this fund looks like a good potential 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 MGFAX too 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.
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Is MassMutual Premier Global A (MGFAX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Global - Equity fund? MassMutual Premier Global A (MGFAX - Free Report) is a potential starting point. MGFAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
MGFAX is classified in the Global - Equity segment by Zacks, an area full of possibilities. Even though Global - Equity mutual funds invest in bigger markets like the U.S., Europe, and Japan, these kinds of funds aren't limited by geography. Rather, they offer an investment strategy that utilizes the global economy to provide stable returns.
History of Fund/Manager
MassMutual is based in Springfield, MA, and is the manager of MGFAX. MassMutual Premier Global A debuted in December of 2004. Since then, MGFAX has accumulated assets of about $30.77 million, according to the most recently available information. The fund's current manager, Rajeev Bhaman, has been in charge of the fund since December of 2004.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 10.6%, and is in the top 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 8.74%, 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. The standard deviation of MGFAX over the past three years is 13.24% compared to the category average of 9.25%. Over the past 5 years, the standard deviation of the fund is 12.27% compared to the category average of 9.04%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. In the most recent bear market, MGFAX lost 53.64% and underperformed comparable funds by 1.27%. This might suggest that the fund is a worse choice than its peers during a bear market.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.1, which means it is hypothetically more volatile than 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. The fund has produced a negative alpha over the past 5 years of -3.07, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, MGFAX is a load fund. It has an expense ratio of 1.41% compared to the category average of 1.20%. So, MGFAX is actually more expensive than its peers from a cost perspective.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, MassMutual Premier Global A has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, this fund looks like a good potential 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 MGFAX too 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.