On the lookout for a Small Cap Growth fund? Starting with MassMutual Select Small Cap Growth Equity I (MSGZX) is one possibility. MSGZX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
MSGZX is part of the Small Cap Growth category, and this segment boasts an array of many other possible options. Small Cap Growth mutual funds usually focus their portfolios on stocks with large growth opportunities and a market cap of under $2 billion. These portfolios tend to feature small companies in up-and-coming industries and markets.
History of Fund/Manager
MSGZX is a part of the MassMutual family of funds, a company based out of Springfield, MA. The MassMutual Select Small Cap Growth Equity I made its debut in November of 2010 and MSGZX has managed to accumulate roughly $464.36 million in assets, as of the most recently available information. The fund’s current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. MSGZX has a 5-year annualized total return of 6.06%, and is 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 18.8%, which places it in the top 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. MSGZX’s standard deviation over the past three years is 18.67% compared to the category average of 12.37%. Looking at the past 5 years, the fund’s standard deviation is 20.08% compared to the category average of 14.03%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.12, the fund is likely to be more volatile than the market average. 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. The fund has produced a negative alpha over the past 5 years of -7.17, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.