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Is American Century Global Gold Investor (BGEIX) a Strong Mutual Fund Pick Right Now?
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If you're looking for a Mutual Fund Equity Report fund category, then a potential option is American Century Global Gold Investor (BGEIX - Free Report) . BGEIX carries 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
American Century is based in Kansas City, MO, and is the manager of BGEIX. Since American Century Global Gold Investor made its debut in August of 1988, BGEIX has garnered more than $396.58 million in assets. The fund's current manager, Yulin Long, has been in charge of the fund since May of 2016.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 0.42%, and it sits 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 -4.94%, 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. Over the past three years, BGEIX's standard deviation comes in at 35.64%, compared to the category average of 20.61%. Looking at the past 5 years, the fund's standard deviation is 31.24% compared to the category average of 18.04%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.66, 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. BGEIX has generated a negative alpha over the past five years of -2.34, demonstrating that managers in this portfolio find it difficult to pick 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, BGEIX is a no load fund. It has an expense ratio of 0.65% compared to the category average of 1.33%. So, BGEIX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $50.
Bottom Line
Overall, American Century Global Gold Investor ( BGEIX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
This could just be the start of your research on BGEIXin the Mutual Fund Equity Report category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is American Century Global Gold Investor (BGEIX) a Strong Mutual Fund Pick Right Now?
If you're looking for a Mutual Fund Equity Report fund category, then a potential option is American Century Global Gold Investor (BGEIX - Free Report) . BGEIX carries 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
American Century is based in Kansas City, MO, and is the manager of BGEIX. Since American Century Global Gold Investor made its debut in August of 1988, BGEIX has garnered more than $396.58 million in assets. The fund's current manager, Yulin Long, has been in charge of the fund since May of 2016.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 0.42%, and it sits 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 -4.94%, 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. Over the past three years, BGEIX's standard deviation comes in at 35.64%, compared to the category average of 20.61%. Looking at the past 5 years, the fund's standard deviation is 31.24% compared to the category average of 18.04%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.66, 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. BGEIX has generated a negative alpha over the past five years of -2.34, demonstrating that managers in this portfolio find it difficult to pick 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, BGEIX is a no load fund. It has an expense ratio of 0.65% compared to the category average of 1.33%. So, BGEIX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $50.
Bottom Line
Overall, American Century Global Gold Investor ( BGEIX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
This could just be the start of your research on BGEIXin the Mutual Fund Equity Report category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.