Any investors hoping to find a Mutual Fund Equity Report fund might consider looking past Invesco Summit P (SMMIX). SMMIX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
SMMIX finds itself in the Invesco family, based out of Kansas City, MO. Invesco Summit P debuted in November of 1982. Since then, SMMIX has accumulated assets of about $2.18 billion, according to the most recently available information. The fund's current manager is a team of investment professionals.
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 9.14%, and it sits in the bottom 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 7.01%, which places it in the bottom third during this time-frame.
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. SMMIX's standard deviation over the past three years is 21.33% compared to the category average of 18.12%. Over the past 5 years, the standard deviation of the fund is 21.5% compared to the category average of 15.96%. This makes the fund more volatile than its peers over the past half-decade.
With a 5-year beta of 1.08, the fund is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -2.43. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Examining the equity 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 if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
Currently, this mutual fund is holding 96.77% stock in stocks, with an average market capitalization of $258.90 billion. The fund has the heaviest exposure to the following market sectors:
Turnover is about 78%, so those in charge of the fund make more trades in a given year than the category average.
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, SMMIX is a no load fund. It has an expense ratio of 0.84% compared to the category average of 0.99%. From a cost perspective, SMMIX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Overall, Invesco Summit P ( SMMIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
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