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Is Parnassus Core Equity Investor (PRBLX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Large Cap Value fund? Parnassus Core Equity Investor (PRBLX - Free Report) is a possible starting point. PRBLX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
PRBLX is one of many Large Cap Value mutual funds to choose from. These funds invest in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This strategy can often produce low P/E ratios and high dividend yields; growth levels; however, growth levels are oftentimes cut back. These funds'high growth opportunities are slowed even more since large-cap stocks are usually in more stable industries with low to moderate growth prospects. Thus, investors interested in a stable income stream fund Large Cap Value funds very appealing.
History of Fund/Manager
Parnassus is responsible for PRBLX, and the company is based out of San Francisco, CA. Since Parnassus Core Equity Investor made its debut in September of 1992, PRBLX has garnered more than $13.58 billion in assets. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 14.51%, and it sits 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 10.42%, 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. The standard deviation of PRBLX over the past three years is 17.22% compared to the category average of 15.79%. The fund's standard deviation over the past 5 years is 17.11% compared to the category average of 16.8%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.92, the fund is likely to be less volatile than the market average. 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. PRBLX has generated a positive alpha over the past five years of 0.7, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining 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 mostly on equities that are traded in the United States.
The mutual fund currently has 76.87% of its holdings in stocks, and these companies have an average market capitalization of $369.12 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Industrial Cyclical
Finance
Non-Durable
With turnover at about 30.1%, this 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, PRBLX is a no load fund. It has an expense ratio of 0.82% compared to the category average of 0.86%. PRBLX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $2,000, investors should also note that each subsequent investment needs to 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, Parnassus Core Equity Investor ( PRBLX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Parnassus Core Equity Investor ( PRBLX ) looks like a somewhat average choice for investors right now.
Want even more information about PRBLX? 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. 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 Parnassus Core Equity Investor (PRBLX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Large Cap Value fund? Parnassus Core Equity Investor (PRBLX - Free Report) is a possible starting point. PRBLX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
PRBLX is one of many Large Cap Value mutual funds to choose from. These funds invest in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This strategy can often produce low P/E ratios and high dividend yields; growth levels; however, growth levels are oftentimes cut back. These funds'high growth opportunities are slowed even more since large-cap stocks are usually in more stable industries with low to moderate growth prospects. Thus, investors interested in a stable income stream fund Large Cap Value funds very appealing.
History of Fund/Manager
Parnassus is responsible for PRBLX, and the company is based out of San Francisco, CA. Since Parnassus Core Equity Investor made its debut in September of 1992, PRBLX has garnered more than $13.58 billion in assets. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 14.51%, and it sits 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 10.42%, 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. The standard deviation of PRBLX over the past three years is 17.22% compared to the category average of 15.79%. The fund's standard deviation over the past 5 years is 17.11% compared to the category average of 16.8%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.92, the fund is likely to be less volatile than the market average. 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. PRBLX has generated a positive alpha over the past five years of 0.7, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining 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 mostly on equities that are traded in the United States.
The mutual fund currently has 76.87% of its holdings in stocks, and these companies have an average market capitalization of $369.12 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Industrial Cyclical
- Finance
- Non-Durable
With turnover at about 30.1%, this 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, PRBLX is a no load fund. It has an expense ratio of 0.82% compared to the category average of 0.86%. PRBLX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $2,000, investors should also note that each subsequent investment needs to 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, Parnassus Core Equity Investor ( PRBLX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Parnassus Core Equity Investor ( PRBLX ) looks like a somewhat average choice for investors right now.
Want even more information about PRBLX? 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. 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.