If you’re stuck looking for large-cap growth funds, consider US Funds Growth Fund C (GFACX – Free Report) as a possibility. GFACX has a Zacks Mutual Fund Rank of #1 (Strong Buy), which is based on various forecasting factors such as size, cost, and past performance.
objective
GFACX is ranked in the Growth Large Cap sector by Zacks, an area full of potential. Companies are usually considered large-cap if their stock market valuation is more than $10 billion. Large-cap mutual funds invest in many large U.S. companies that are expected to grow at a faster rate than their large-cap counterparts.
History of the fund/manager
GFACX finds itself within the American Funds family, headquartered in Los Angeles, California. The U.S. Funds Growth Fund C made its debut in March of 2001. Since then, GFACX has amassed assets of about $4.04 billion, according to the most recent information available. A team of investment professionals is the current manager of the fund.
performance
Investors naturally look for funds with strong performance. This fund carries a 5-year annualized total return of 10.96%, ranking third among peers in its category. Investors who prefer to analyze shorter time frames should look at their 3-year total annualized return of 27.36%, which puts them in the middle third over this time frame.
It is important to note that product returns may not reflect all product expenses. Any fees not reflected would reduce returns. Total returns do not reflect the fund’s returns [%] Sale charge. If sales charges had been included, the total returns would have been lower.
When looking at a fund’s performance, it is also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, GFACX’s standard deviation has been 14.67%, compared to the category average of 11.45%. The fund’s standard deviation over the past five years is 17.46% compared to the category average of 12.96%. This makes the fund more volatile than its peers over the past half decade.
Risk factors
Investors should not forget about beta, which is an important way to measure a mutual fund’s risk compared to the market as a whole. GFACX has a 5-year beta of 1.1, which means it is likely to be more volatile than the market average. Another factor to consider is alpha, because it reflects a portfolio’s performance on a risk-adjusted basis compared to the benchmark – in this case, the S&P 500. The fund has produced a negative alpha over the past five years of -3.8, which indicates that managers in this portfolio have difficulty selecting securities that generate better returns than the benchmark.
Collectibles
Investigating a mutual fund’s stock holdings is also a valuable exercise. This can show us how a manager applies his stated methodology, as well as whether there are any inherent biases in his approach. For this particular fund, the focus is primarily on stocks that trade in the United States.
This fund currently owns about 81% of the stock, with an average market capitalization of $587.03 billion. The Fund has the greatest exposure to the following market sectors:
- technology.
- finance.
- Retail trade.
Trading volume is around 32%, so fund administrators make fewer trades than similar peers.
Expenses
Costs are becoming increasingly important for mutual fund investing, especially as competition in this market intensifies. All things being equal, a less expensive product will outperform its comparable counterpart, so taking a close look at these metrics is key for investors. In terms of fees, GFACX is a no-load fund and has an expense ratio of 1.35%.
While the minimum initial investment for the product is $250, investors should also note that each subsequent investment must be at least $50.
Fees charged by investment advisors have not been taken into account. Returns would be lower if they were included.
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