There are many choices in the Mid Cap Growth category, but where do you start your research? Well, one fund worth considering is Neuberger Berman Mid Cap Growth A (NMGAX). NMGAX has a Zacks Mutual Fund ranking of 1 (strong buy), which is based on nine forecasting factors such as size, cost and past performance.
We note that NMGAX is a mid-cap growth fund, and this area is also full of many different options. Companies are generally considered to be growth stocks when they regularly report significant growth in sales and / or profits. Thus, mid-cap growth funds select stocks – typically companies with a market capitalization of between $ 2 billion and $ 10 billion – that present many growth opportunities for investors relative to their peers.
Fund history / manager
Neuberger is based in New York, NY and is the manager of NMGAX. The Neuberger Berman Mid Cap Growth A debuted in May 1998 and NMGAX has managed to accumulate approximately $ 33 million in assets, according to the latest information available. A team of investment professionals is the current manager of the fund.
Investors naturally look for high-performance funds. This fund, in particular, had a total annualized return over 5 years of 8.29% and is in the middle third of its peers. But if you’re looking for a shorter timeframe, you should also look at its total annualized return over 3 years of 11.97%, which places it in the middle third during this period.
When considering the performance of a fund, 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 NMGAX over the past three years is 15.51% compared to the category average of 10.61%. The standard deviation of the fund over the past 5 years is 14.47% compared to a category average of 10.45%. This has made the fund more volatile than its peers over the past decade.
It is always important to be aware of the drawbacks of any future investment, so one should not overlook the risks associated with this segment. NMGAX lost 44.7% in the latest bear market and outperformed its peer group by 7%. This makes the fund a better choice than its peers in a declining market environment.
However, with a 5-year beta of 1.04, the fund is likely to be more volatile than the market average. Because alpha represents the performance of a portfolio on a risk-adjusted basis compared to a benchmark, which is the S&P 500 in this case, it is also worth paying attention to this measure. Over the past 5 years, the fund has had a negative alpha of -0.92. This means that the managers of this portfolio find it difficult to choose securities that generate returns higher than those of the benchmark.
The costs are increasingly important for investment in mutual funds, and all the more as competition intensifies in this market. And all else being equal, a lower cost product will outperform its otherwise identical counterpart, so it is essential for investors to take a closer look at these parameters. In terms of costs, NMGAX is a loading fund. It has an expense ratio of 1.07% compared to the category average of 1.20%. From a cost perspective, NMGAX is actually cheaper than its peers.
This fund requires a minimum initial investment of $ 1,000, and each subsequent investment must be at least $ 100.
Overall, Neuberger Berman Mid Cap Growth A (NMGAX) has a high ranking of Zacks mutual funds, and in conjunction with its relatively similar performance, medium downside risk and lower fees, Neuberger Berman Mid Cap Growth A (NMGAX) appears to have good potential choice for investors at this time.
Don’t stop here for your research on mid-cap growth funds. We also have a lot more on our site to help you find the best possible fund for your portfolio. Be sure to visit www.zacks.com/funds/mutual-funds for more information on the fund world and feel free to compare NMGAX to its peers as well as for additional information. And don’t forget, Zacks also covered all of your equity needs! Be sure to check out Zacks.com for more information on our filtering capabilities, our rankings and all of our articles.
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