American Funds Growth Fund of America C (GFACX) shows promise with a solid ranking and performance metrics worth considering for investors.
Los Angeles: If you’re hunting for a Large Cap Growth fund, the American Funds Growth Fund of America C (GFACX) might catch your eye. It has a Zacks Mutual Fund Rank of 2, which is a solid “Buy” rating based on various factors like size, cost, and past performance.
This fund is part of the Large Cap Growth category, which includes companies with market valuations over $10 billion. These funds typically invest in large U.S. firms expected to grow faster than their peers.
Managed by American Funds, GFACX launched in March 2001 and has about $3.75 billion in assets. A team of investment pros oversees it, so you know there’s expertise behind the scenes.
When it comes to performance, GFACX has a 5-year annualized return of 14.1%, placing it in the middle of its category. If you look at the 3-year return, it’s 6.07%, which is also in the middle third. Just keep in mind that these returns might not include all expenses, which could lower the actual returns.
Another thing to consider is the fund’s volatility. Over the last three years, GFACX had a standard deviation of 19.84%, higher than the category average of 14.71%. This means it’s a bit more volatile than its peers.
With a 5-year beta of 1.05, this fund is likely to be more volatile than the market. Its alpha is -0.7, indicating that the managers have struggled to pick securities that outperform the S&P 500.
Cost is another important factor. GFACX is a no-load fund with an expense ratio of 1.36%, which is higher than the category average of 0.95%. So, it’s a bit pricier than some of its competitors.
For those interested in investing, the minimum initial investment is $250, with subsequent investments needing to be at least $50. Just remember, any fees from investment advisors aren’t included in the returns, so they could be lower.
In summary, despite its higher fees and average performance, GFACX has a strong Zacks Mutual Fund rank, making it a decent option for investors right now.
If you want to dive deeper into this fund or compare it with others in the Large Cap Growth category, check out www.zacks.com/funds/mutual-funds. And if you’re curious about stock reports, Zacks.com has plenty of tools to help you out.
