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Is Columbia Seligman Technology & Information A (SLMCX) a Strong Mutual Fund Pick Right Now?

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Mutual Fund Equity Report fund seekers may want to consider taking a look at Columbia Seligman Technology & Information A (SLMCX - Free Report) . SLMCX possesses 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

SLMCX finds itself in the Columbia family, based out of Kansas City, MO. Since Columbia Seligman Technology & Information A made its debut in June of 1983, SLMCX has garnered more than $5.74 billion in assets. The fund is currently managed by 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 15.86%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 16.64%, 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. The standard deviation of SLMCX over the past three years is 26.61% compared to the category average of 18.45%. The standard deviation of the fund over the past 5 years is 24.37% compared to the category average of 16.23%. 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 1.21, which means it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. SLMCX's 5-year performance has produced a positive alpha of 3.41, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Holdings

Investigating 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.

Currently, this mutual fund is holding 76.6% stock in stocks, with an average market capitalization of $149.43 billion. Turnover is 16%, which means, on average, the fund makes fewer trades than its comparable peers.

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, SLMCX is a load fund. It has an expense ratio of 1.17% compared to the category average of 1.30%. From a cost perspective, SLMCX is actually cheaper than its peers.

While the minimum initial investment for the product is $2,000, investors should also note that there is no minimum for each subsequent investment.

Bottom Line

Overall, Columbia Seligman Technology & Information A ( SLMCX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.

For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into SLMCX too 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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