Having trouble finding a Mid Cap Growth fund? Morgan Stanley Inst Discovery I (MPEGX) is a possible starting point. MPEGX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes MPEGX as Mid Cap Growth, a segment packed with options. Mid Cap Growth mutual funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. A firm is typically considered to be a growth stock if it consistently posts impressive sales and/or earnings growth.
History of Fund/Manager
MorgStanley is based in New York, NY, and is the manager of MPEGX. Morgan Stanley Inst Discovery I made its debut in March of 1990, and since then, MPEGX has accumulated about $268.65 million in assets, per the most up-to-date date available. A team of investment professionals is the fund’s current manager.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of -4.84%, and it sits in the bottom third among its category peers. If you’re interested in shorter time frames, do not dismiss looking at the fund’s 3-year annualized total return of 25.07%, 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. Compared to the category average of 12.54%, the standard deviation of MPEGX over the past three years is 28.12%. Looking at the past 5 years, the fund’s standard deviation is 33.2% compared to the category average of 14.32%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.51, so it is likely going to be more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio’s performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. MPEGX’s 5-year performance has produced a negative alpha of -16.01, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.