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

Any investors hoping to find a Small Cap Growth fund could think about starting with JPMorgan Small Cap Growth Fund A (PGSGX). PGSGX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.ObjectivePGSGX is one of many different Small Cap Growth funds to choose from. Small Cap Growth mutual funds build portfolios around stocks with markets caps under $2 billion and large growth opportunities. Additionally, these portfolios typically highlight smaller companies in promising markets and industries.History of Fund/ManagerPGSGX finds itself in the J.P. Morgan family, based out of Boston, MA. JPMorgan Small Cap Growth Fund A made its debut in July of 1991, and since then, PGSGX has accumulated about $331.54 million in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.PerformanceOf course, investors look for strong performance in funds. PGSGX has a 5-year annualized total return of 5.29% and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -4.72%, 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. PGSGX's standard deviation over the past three years is 23.9% compared to the category average of 15.34%. The fund's standard deviation over the past 5 years is 25.3% compared to the category average of 16.35%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 1.18, the fund is likely to be more volatile than the market average. 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. The fund has produced a negative alpha over the past 5 years of -8.79, which shows 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, PGSGX is a load fund. It has an expense ratio of 1.24% compared to the category average of 0.98%. Looking at the fund from a cost perspective, PGSGX is actually more expensive than its peers.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 weak performance, worse downside risk, and higher fees, JPMorgan Small Cap Growth Fund A ( PGSGX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.Want even more information about PGSGX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 (PGSGX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks