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Is Columbia Global Technology Growth Z (CMTFX) a Strong Mutual Fund Pick Right Now?
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If you have been looking for Sector - Tech funds, a place to start could be Columbia Global Technology Growth Z (CMTFX - Free Report) . CMTFX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that CMTFX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.
History of Fund/Manager
Columbia is based in Kansas City, MO, and is the manager of CMTFX. Columbia Global Technology Growth Z debuted in November of 2000. Since then, CMTFX has accumulated assets of about $1.39 billion, according to the most recently available information. The fund is currently managed by Rahul Narang who has been in charge of the fund since July of 2012.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. CMTFX has a 5-year annualized total return of 29.85% 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 28.46%, 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 16.42%, the standard deviation of CMTFX over the past three years is 20.76%. Looking at the past 5 years, the fund's standard deviation is 17.35% compared to the category average of 13.65%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.02, which means it is hypothetically as volatile as 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. With a positive alpha of 10.77, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, CMTFX is a no load fund. It has an expense ratio of 0.94% compared to the category average of 1.35%. Looking at the fund from a cost perspective, CMTFX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Columbia Global Technology Growth Z ( CMTFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Columbia Global Technology Growth Z ( CMTFX ) looks like a good potential choice for investors right now.
Want even more information about CMTFX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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 Columbia Global Technology Growth Z (CMTFX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Sector - Tech funds, a place to start could be Columbia Global Technology Growth Z (CMTFX - Free Report) . CMTFX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that CMTFX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.
History of Fund/Manager
Columbia is based in Kansas City, MO, and is the manager of CMTFX. Columbia Global Technology Growth Z debuted in November of 2000. Since then, CMTFX has accumulated assets of about $1.39 billion, according to the most recently available information. The fund is currently managed by Rahul Narang who has been in charge of the fund since July of 2012.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. CMTFX has a 5-year annualized total return of 29.85% 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 28.46%, 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 16.42%, the standard deviation of CMTFX over the past three years is 20.76%. Looking at the past 5 years, the fund's standard deviation is 17.35% compared to the category average of 13.65%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.02, which means it is hypothetically as volatile as 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. With a positive alpha of 10.77, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, CMTFX is a no load fund. It has an expense ratio of 0.94% compared to the category average of 1.35%. Looking at the fund from a cost perspective, CMTFX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Columbia Global Technology Growth Z ( CMTFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Columbia Global Technology Growth Z ( CMTFX ) looks like a good potential choice for investors right now.
Want even more information about CMTFX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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.