Looking for a Mutual Fund Equity Report fund? You may want to consider MFS Technology Fund A (MTCAX) as a possible option. MTCAX 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
MFS is based in Boston, MA, and is the manager of MTCAX. The MFS Technology Fund A made its debut in January of 1997 and MTCAX has managed to accumulate roughly $519.90 million in assets, as of the most recently available information. Matthew Sabel is the fund’s current manager and has held that role since May of 2011.
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 8.5%, and is in the bottom 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 5.07%, which places it in the bottom 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 MTCAX over the past three years is 23.71% compared to the category average of 17.78%. Looking at the past 5 years, the fund’s standard deviation is 21.39% compared to the category average of 15.66%. This makes the fund more volatile than its peers over the past half-decade.
With a 5-year beta of 1.06, the fund is likely to be more volatile than the market average. 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. With a negative alpha of -1.81, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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 largely on equities that are traded in the United States.
The mutual fund currently has 97.94% of its holdings in stocks, which have an average market capitalization of $627.74 billion. This fund’s turnover is about 40%, so the fund managers are making fewer trades than comparable funds.
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, MTCAX is a load fund. It has an expense ratio of 1.11% compared to the category average of 1.30%. MTCAX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Overall, MFS Technology Fund A ( MTCAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
Don’t stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare MTCAX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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