Is Columbia Global Technology Growth A (CTCAX) a good mutual fund choice right now?
JHere are plenty of choices in the Mutual Fund Stock Report category, but where to start your search? Well, one fund that might be worth investigating is Columbia Global Technology Growth A (CTCAX). CTCAX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine predictor factors such as size, cost and past performance.
Columbia is based in Kansas City, MO, and is the manager of CTCAX. Columbia Global Technology Growth A debuted in November 2002. Since then, CTCAX has accumulated assets of approximately $679.23 million, according to the most recent information available. Rahul Narang is the current fund manager and has held the position since July 2012.
Clearly, what investors are looking for in these funds is strong performance relative to their peers. This fund has a 5-year annualized total return of 25.58% and ranks in the top third of its peers in the category. Investors who prefer to analyze shorter time frames should look at its 3-year annualized total return of 29.13%, which puts it in the top third over this period.
When looking at a fund’s performance, it’s also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. CTCAX’s standard deviation over the past three years is 19.76% compared to the category average of 15.59%. Looking back over the past 5 years, the standard deviation of the fund is 18.38% compared to the category average of 13.83%. This makes the fund more volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 1.05, so it is likely to be more volatile than the market as a whole. Since alpha represents the performance of a portfolio on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, it is also worth paying attention to this measure. Over the last 5 years, the fund has a positive alpha of 7.26. This means that the managers of this portfolio are adept at choosing securities that generate higher returns than those of the benchmark index.
Investigating the stock 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 whether there are any inherent biases in their approach. For this particular fund, the focus is largely on stocks that are traded in the United States.
This fund currently holds approximately 86.41% equity, with an average market capitalization of $515.34 billion. With a turnover rate of around 18%, this fund trades less than its comparable peers.
Costs are increasingly important for investing in mutual funds, especially as competition intensifies in this market. And all other things being equal, a lower-cost product will outperform its otherwise identical counterpart, so it’s essential for investors to take a closer look at these metrics. In terms of fees, CTCAX is a load fund. It has an expense ratio of 1.18% compared to the category average of 1.29%. Looking at the fund from a cost perspective, CTCAX is actually cheaper than its peers.
Investors should be aware that with this product the minimum initial investment is $2,000; each subsequent investment has no minimum amount.
Overall, Columbia Global Technology Growth A (CTCAX) has a high ranking in the Zacks Mutual Fund and, in conjunction with its relatively strong performance, medium downside risk and low fees, this fund seems like a good one. potential choice for investors right now.
Don’t stop here for your fund research on the Mutual Fund Stock Report. We also have a lot more on our site to help you find the best possible fund for your portfolio. Be sure to check out www.zacks.com/funds/mutual-funds for more insight into the world of funds, and feel free to compare CTCAX to its peers for more insight. Zacks provides a full suite of tools to help you analyze your portfolio – funds and stocks – in the most efficient way possible.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.