If investors are looking at the Large Cap Value fund category, Manning & Napier Disciplined Value I (MNDFX Quick QuoteMNDFX - Free Report) could be a potential option. MNDFX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

MNDFX is one of many Large Cap Value mutual funds to choose from. These funds invest in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This strategy can often produce low P/E ratios and high dividend yields; growth levels; however, growth levels are oftentimes cut back. These funds'high growth opportunities are slowed even more since large-cap stocks are usually in more stable industries with low to moderate growth prospects. Thus, investors interested in a stable income stream fund Large Cap Value funds very appealing.

History of Fund/Manager

Manning & Napier is based in Columbus, OH, and is the manager of MNDFX. The Manning & Napier Disciplined Value I made its debut in November of 2008 and MNDFX has managed to accumulate roughly $143.27 million in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 10.54%, 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 11.67%, 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. Over the past three years, MNDFX's standard deviation comes in at 13.01%, compared to the category average of 10.74%. The fund's standard deviation over the past 5 years is 12.06% compared to the category average of 10.92%. 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.

Nevertheless, investors should also note that the fund has a 5-year beta of 0.97, which means it is hypothetically as volatile as 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 negative alpha of -1.24. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Exploring 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 principally on equities that are traded in the United States.

The mutual fund currently has 86.27% of its holdings in stocks, with an average market capitalization of $130.36 billion. The fund has the heaviest exposure to the following market sectors:

1. Health
2. Industrial Cyclical
3. Finance
4. Technology
5. Retail Trade

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, MNDFX is a no load fund. It has an expense ratio of 0.58% compared to the category average of 1%. From a cost perspective, MNDFX is actually cheaper than its peers.

While the minimum initial investment for the product is $1 million, investors should also note that there is no minimum for each subsequent investment.

Bottom Line

Overall, Manning & Napier Disciplined Value I ( MNDFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Manning & Napier Disciplined Value I ( MNDFX ) looks like a good potential choice for investors right now.

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