Large Cap Value fund seekers should consider taking a look at JPMorgan Intrepid Value Fund A (JIVAX - Free Report) . JIVAX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Large Cap Value mutual funds invest in stocks with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value; this value investing strategy often leads to low P/E ratios and high dividend yields, though growth levels are often curtailed. The high-growth opportunity of these funds are slowed even further, as large-cap securities are generally in stable industries with low to moderate growth prospects. Therefore, Large Cap Value funds are usually more appealing to investors who are interested in a stable income stream.
History of Fund/Manager
J.P. Morgan is responsible for JIVAX, and the company is based out of Boston, MA. Since JPMorgan Intrepid Value Fund A made its debut in June of 2005, JIVAX has garnered more than $76.91 million in assets. The fund is currently managed by a team of investment professionals.
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 7.37%, and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 11.51%, 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. Compared to the category average of 9.22%, the standard deviation of JIVAX over the past three years is 12.21%. Over the past 5 years, the standard deviation of the fund is 12.6% compared to the category average of 9.58%. This makes the fund more volatile than its peers over the past half-decade.
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. In the most recent bear market, JIVAX lost 53.11% and underperformed comparable funds by 2.47%. This means that the fund could possibly be a worse choice than its peers during a down market environment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. JIVAX has a 5-year beta of 1.06, which means it is likely to be more volatile than the market average. 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. JIVAX has generated a negative alpha over the past five years of -4.33, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.
This fund is currently holding about 77.88% stock in stocks, with an average market capitalization of $80.29 billion. The fund has the heaviest exposure to the following market sectors:
Turnover is 68%, which means, on average, the fund makes more traders than comparable funds in a given year.
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, JIVAX is a load fund. It has an expense ratio of 0.82% compared to the category average of 0.99%. JIVAX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50.
Overall, JPMorgan Intrepid Value Fund A ( JIVAX ) has a high Zacks Mutual Fund rank, similar performance, average downside risk, and lower fees compared to its peers.
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