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Is American Century Global Growth Investor (TWGGX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Global - Equity fund? Starting with American Century Global Growth Investor (TWGGX - Free Report) is one possibility. TWGGX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes TWGGX as Global - Equity, which is a segment packed with options. Global - Equity mutual funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. They also provide an investment technique that leverages the diverse nature of the global economy in the hopes of providing a stable return.
History of Fund/Manager
American Century is responsible for TWGGX, and the company is based out of Kansas City, MO. American Century Global Growth Investor debuted in December of 1998. Since then, TWGGX has accumulated assets of about $465.63 million, according to the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. TWGGX has a 5-year annualized total return of 10.45% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 17.56%, 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. Compared to the category average of 9.77%, the standard deviation of TWGGX over the past three years is 12.22%. The standard deviation of the fund over the past 5 years is 12.56% compared to the category average of 10.07%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. In TWGGX's case, the fund lost 52.61% in the most recent bear market and outperformed its peer group by 0%. This might suggest that the fund is an on par choice than its peers during a bear market.
Even still, the fund has a 5-year beta of 0.97, so investors should note that it is hypothetically as volatile as the market at large. 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. TWGGX has generated a negative alpha over the past five years of -0.68, 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, TWGGX is a no load fund. It has an expense ratio of 1.08% compared to the category average of 1.18%. From a cost perspective, TWGGX is actually cheaper than its peers.
While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, American Century Global Growth Investor ( TWGGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on the Global - Equity 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 TWGGX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is American Century Global Growth Investor (TWGGX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Global - Equity fund? Starting with American Century Global Growth Investor (TWGGX - Free Report) is one possibility. TWGGX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes TWGGX as Global - Equity, which is a segment packed with options. Global - Equity mutual funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. They also provide an investment technique that leverages the diverse nature of the global economy in the hopes of providing a stable return.
History of Fund/Manager
American Century is responsible for TWGGX, and the company is based out of Kansas City, MO. American Century Global Growth Investor debuted in December of 1998. Since then, TWGGX has accumulated assets of about $465.63 million, according to the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. TWGGX has a 5-year annualized total return of 10.45% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 17.56%, 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. Compared to the category average of 9.77%, the standard deviation of TWGGX over the past three years is 12.22%. The standard deviation of the fund over the past 5 years is 12.56% compared to the category average of 10.07%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. In TWGGX's case, the fund lost 52.61% in the most recent bear market and outperformed its peer group by 0%. This might suggest that the fund is an on par choice than its peers during a bear market.
Even still, the fund has a 5-year beta of 0.97, so investors should note that it is hypothetically as volatile as the market at large. 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. TWGGX has generated a negative alpha over the past five years of -0.68, 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, TWGGX is a no load fund. It has an expense ratio of 1.08% compared to the category average of 1.18%. From a cost perspective, TWGGX is actually cheaper than its peers.
While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, American Century Global Growth Investor ( TWGGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on the Global - Equity 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 TWGGX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.