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If investors are looking at the Mutual Fund Bond fund category, American Century CA High Yield Municipal Investor (BCHYX - Free Report) could be a potential option. BCHYX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various 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 BCHYX. Since American Century CA High Yield Municipal Investor made its debut in December of 1986, BCHYX has garnered more than $679.11 million in assets. The fund is currently managed by Joseph Gotelli who has been in charge of the fund since January of 2012.
Performance
Investors naturally seek funds with strong performance. BCHYX has a 5-year annualized total return of 2.15% and is in the middle 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 -0.8%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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 13.2%, the standard deviation of BCHYX over the past three years is 9.08%. Looking at the past 5 years, the fund's standard deviation is 8.43% compared to the category average of 13.62%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.01, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, BCHYX has a negative alpha of -0.11, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 48 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
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, BCHYX is a no load fund. It has an expense ratio of 0.50% compared to the category average of 0.90%. Looking at the fund from a cost perspective, BCHYX is actually cheaper than its peers.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $50.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, American Century CA High Yield Municipal Investor ( BCHYX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and lower fees, American Century CA High Yield Municipal Investor ( BCHYX ) looks like a great potential choice for investors right now.
Don't stop here for your research on Mutual Fund Bond 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 BCHYX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is BCHYX a Strong Bond Fund Right Now?
If investors are looking at the Mutual Fund Bond fund category, American Century CA High Yield Municipal Investor (BCHYX - Free Report) could be a potential option. BCHYX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various 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 BCHYX. Since American Century CA High Yield Municipal Investor made its debut in December of 1986, BCHYX has garnered more than $679.11 million in assets. The fund is currently managed by Joseph Gotelli who has been in charge of the fund since January of 2012.
Performance
Investors naturally seek funds with strong performance. BCHYX has a 5-year annualized total return of 2.15% and is in the middle 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 -0.8%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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 13.2%, the standard deviation of BCHYX over the past three years is 9.08%. Looking at the past 5 years, the fund's standard deviation is 8.43% compared to the category average of 13.62%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.01, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, BCHYX has a negative alpha of -0.11, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 48 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
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, BCHYX is a no load fund. It has an expense ratio of 0.50% compared to the category average of 0.90%. Looking at the fund from a cost perspective, BCHYX is actually cheaper than its peers.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $50.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, American Century CA High Yield Municipal Investor ( BCHYX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and lower fees, American Century CA High Yield Municipal Investor ( BCHYX ) looks like a great potential choice for investors right now.
Don't stop here for your research on Mutual Fund Bond 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 BCHYX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.