Is JPMorgan Dynamic Small Cap Growth A (VSCOX) a Strong Mutual Fund Pick Right Now?

If you're looking for a Small Cap Growth fund category, then a potential option is JPMorgan Dynamic Small Cap Growth A (VSCOX). VSCOX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.ObjectiveThe world of Small Cap Growth funds is an area filled with options, such as VSCOX. These funds tend to create their portfolios around stocks that sport large growth opportunities and market capitalization of less than $2 billion. The companies in these portfolios are usually on the smaller side, and are in up-and-coming industries and markets.History of Fund/ManagerJ.P. Morgan is responsible for VSCOX, and the company is based out of Boston, MA. JPMorgan Dynamic Small Cap Growth A made its debut in May of 1997, and since then, VSCOX has accumulated about $450.61 million in assets, per the most up-to-date date available. The fund's current manager, Eytan Shapiro, has been in charge of the fund since September of 2004.PerformanceInvestors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 8.82%, and is 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 5.14%, which places it in the bottom 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, VSCOX's standard deviation comes in at 19.96%, compared to the category average of 15.97%. Looking at the past 5 years, the fund's standard deviation is 22% compared to the category average of 17.49%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 1.07, 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. VSCOX's 5-year performance has produced a negative alpha of -5.66, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.HoldingsExamining 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 primarily on equities that are traded in the United States.This fund is currently holding about 92.85% in stocks, and these companies have an average market capitalization of $5.26 billion. The fund has the heaviest exposure to the following market sectors: Finance Industrial Cyclical Other Health Technology With turnover at about 39%, this fund is making fewer trades than comparable funds.ExpensesFor investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, VSCOX is a load fund. It has an expense ratio of 1.24% compared to the category average of 0.97%. So, VSCOX is actually more expensive than its peers from a cost perspective.Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, even with its comparatively similar performance, average downside risk, and higher fees, JPMorgan Dynamic Small Cap Growth A ( VSCOX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.For additional information on the Small Cap Growth 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 VSCOX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! 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Click to get this free report Get Your Free (VSCOX): 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