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Is Virtus KAR Small-Cap Growth I (PXSGX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Small Cap Growth fund? Well, Virtus KAR Small-Cap Growth I (PXSGX - Free Report) would not be a good potential starting point right now. PXSGX possesses a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
PXSGX is part of the Small Cap Growth category, and this segment boasts an array of many other possible options. Small Cap Growth mutual funds usually focus their portfolios on stocks with large growth opportunities and a market cap of under $2 billion. These portfolios tend to feature small companies in up-and-coming industries and markets.
History of Fund/Manager
Virtus Funds is based in Hartford, CT, and is the manager of PXSGX. Since Virtus KAR Small-Cap Growth I made its debut in June of 2006, PXSGX has garnered more than $2.55 billion in assets. The fund's current manager, Todd Beiley, has been in charge of the fund since April of 2008.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 8.27%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -5.21%, which places it in the bottom 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. PXSGX's standard deviation over the past three years is 21.15% compared to the category average of 16.13%. The fund's standard deviation over the past 5 years is 21.27% compared to the category average of 17.31%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.93, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -4.23. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, PXSGX is a no load fund. It has an expense ratio of 1.09% compared to the category average of 1.02%. From a cost perspective, PXSGX is actually more expensive than its peers.
This fund requires a minimum initial investment of $100,000, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Virtus KAR Small-Cap Growth I ( PXSGX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, Virtus KAR Small-Cap Growth I ( PXSGX ) looks like a poor potential choice for investors right now.
Your research on the Small Cap Growth segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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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Is Virtus KAR Small-Cap Growth I (PXSGX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Small Cap Growth fund? Well, Virtus KAR Small-Cap Growth I (PXSGX - Free Report) would not be a good potential starting point right now. PXSGX possesses a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
PXSGX is part of the Small Cap Growth category, and this segment boasts an array of many other possible options. Small Cap Growth mutual funds usually focus their portfolios on stocks with large growth opportunities and a market cap of under $2 billion. These portfolios tend to feature small companies in up-and-coming industries and markets.
History of Fund/Manager
Virtus Funds is based in Hartford, CT, and is the manager of PXSGX. Since Virtus KAR Small-Cap Growth I made its debut in June of 2006, PXSGX has garnered more than $2.55 billion in assets. The fund's current manager, Todd Beiley, has been in charge of the fund since April of 2008.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 8.27%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -5.21%, which places it in the bottom 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. PXSGX's standard deviation over the past three years is 21.15% compared to the category average of 16.13%. The fund's standard deviation over the past 5 years is 21.27% compared to the category average of 17.31%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.93, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -4.23. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, PXSGX is a no load fund. It has an expense ratio of 1.09% compared to the category average of 1.02%. From a cost perspective, PXSGX is actually more expensive than its peers.
This fund requires a minimum initial investment of $100,000, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Virtus KAR Small-Cap Growth I ( PXSGX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, Virtus KAR Small-Cap Growth I ( PXSGX ) looks like a poor potential choice for investors right now.
Your research on the Small Cap Growth segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.