Is JPMorgan Large Cap Value Fund A (OLVAX) a Strong Mutual Fund Pick Right Now?

If you've been stuck searching for Large Cap Value funds, consider JPMorgan Large Cap Value Fund A (OLVAX) as a possibility. OLVAX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveLarge Cap Value mutual funds invest in stocks with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value; this value investing strategy often leads to low P/E ratios and high dividend yields, though growth levels are often curtailed. The high-growth opportunity of these funds are slowed even further, as large-cap securities are generally in stable industries with low to moderate growth prospects. Therefore, Large Cap Value funds are usually more appealing to investors who are interested in a stable income stream.History of Fund/ManagerJ.P. Morgan is based in Boston, MA, and is the manager of OLVAX. Since JPMorgan Large Cap Value Fund A made its debut in February of 1992, OLVAX has garnered more than $311.43 million in assets. The fund's current manager, Scott Blasdell, has been in charge of the fund since April of 2013.PerformanceInvestors naturally seek funds with strong performance. OLVAX has a 5-year annualized total return of 20.68% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 6%, 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. The standard deviation of OLVAX over the past three years is 17.87% compared to the category average of 14.41%. Over the past 5 years, the standard deviation of the fund is 19.39% compared to the category average of 15.49%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsThe fund has a 5-year beta of 0.94, so investors should note that it is hypothetically less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. OLVAX's 5-year performance has produced a positive alpha of 3.15, which means managers in this portfolio are skilled in picking 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 mostly on equities that are traded in the United States.This fund is currently holding about 78.08% in stocks, which have an average market capitalization of $111.05 billion. This fund's turnover is about 167%, so the fund managers are making more trades per year than the comparable average.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, OLVAX is a load fund. It has an expense ratio of 0.93% compared to the category average of 0.95%. OLVAX is actually cheaper than its peers when you consider factors like cost.Investors need to be aware that with this product, the minimum initial investment is $1,000; 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, JPMorgan Large Cap Value Fund A ( OLVAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.Don't stop here for your research on Large Cap Value funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare OLVAX to its peers as well for additional information. 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Click to get this free report Get Your Free (OLVAX): 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