Is American Funds Washington Mutual Investors A (AWSHX) a Strong Mutual Fund Pick Right Now?

On the lookout for a Large Cap Value fund? Starting with American Funds Washington Mutual Investors A (AWSHX) is one possibility. AWSHX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveAWSHX is one of many Large Cap Value mutual funds to choose from. These funds invest in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This strategy can often produce low P/E ratios and high dividend yields; growth levels; however, growth levels are oftentimes cut back. These funds'high growth opportunities are slowed even more since large-cap stocks are usually in more stable industries with low to moderate growth prospects. Thus, investors interested in a stable income stream fund Large Cap Value funds very appealing.History of Fund/ManagerAmerican Funds is based in Los Angeles, CA, and is the manager of AWSHX. American Funds Washington Mutual Investors A debuted in July of 1952. Since then, AWSHX has accumulated assets of about $87.46 billion, according to the most recently available information. The fund's current manager is a team of investment professionals.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. AWSHX has a 5-year annualized total return of 13.14% 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 11.24%, which places it in the middle 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. Over the past three years, AWSHX's standard deviation comes in at 14.18%, compared to the category average of 14.52%. Over the past 5 years, the standard deviation of the fund is 16.43% compared to the category average of 15.51%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 0.87, the fund is likely to be less 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. AWSHX has generated a negative alpha over the past five years of -0.32, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesAs competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, AWSHX is a load fund. It has an expense ratio of 0.56% compared to the category average of 0.94%. From a cost perspective, AWSHX is actually cheaper than its peers.While the minimum initial investment for the product is $250, investors should also note that each subsequent investment needs to be at least $50.Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, even with its comparatively weak performance, average downside risk, and lower fees, American Funds Washington Mutual Investors A ( AWSHX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.For additional information on the Large Cap Value area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into AWSHX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (AWSHX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks