If you have been looking for Mutual Fund Equity Report fund category, a potential starting could be Edgewood Growth Fund Retail (EGFFX). EGFFX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
EGFFX is a part of the Edgewood family of funds, a company based out of Kansas City, MO. Edgewood Growth Fund Retail made its debut in March of 2006, and since then, EGFFX has accumulated about $723.18 million in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 25.86%, and is 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 28.36%, 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, EGFFX's standard deviation comes in at 17.91%, compared to the category average of 17.78%. The standard deviation of the fund over the past 5 years is 15.76% compared to the category average of 14.62%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.91, so investors should note that it is hypothetically less 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. EGFFX's 5-year performance has produced a positive alpha of 8.5, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining 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.
As of the last filing date, the mutual fund has 79.17% of its assets in stocks, with an average market capitalization of $327.91 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Non-Durable
Turnover is about 16%, so those in charge of the fund make fewer trades than the average comparable fund.
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, EGFFX is a no load fund. It has an expense ratio of 1.40% compared to the category average of 1.02%. From a cost perspective, EGFFX is actually more expensive than its peers.
This fund requires a minimum initial investment of $3,000, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Edgewood Growth Fund Retail ( EGFFX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Edgewood Growth Fund Retail ( EGFFX ) looks like a somewhat average choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds 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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