Is American Century Global Growth Investor (TWGGX) a good mutual fund choice right now?
OAre you looking for a mutual fund equity report fund? Starting with American Century Global Growth Investor (TWGGX) is a possibility. TWGGX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine predictor factors such as size, cost, and past performance.
American Century is based in Kansas City, MO, and is the director of TWGGX. American Century Global Growth Investor debuted in December 1998, and since then TWGGX has accumulated approximately $506.68 million in assets, according to the most recent date available. The current fund manager is a team of investment professionals.
Clearly, what investors are looking for in these funds is strong performance relative to their peers. TWGGX has a 5-year annualized total return of 18.72% and ranks in the top third among its peers in the category. Investors who prefer to analyze shorter time frames should look at its 3-year annualized total return of 25.5%, which puts it in the top third over this period.
When looking at a fund’s performance, it’s also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 14.87%, TWGGX’s standard deviation over the past three years is 16.75%. Over the last 5 years, the standard deviation of the fund is 15.12% against a category average of 13.03%. This makes the fund more volatile than its peers over the past half-decade.
With a 5-year beta of 0.92, the fund should be less 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. TWGGX generated a positive alpha of 1, 52 over the past five years, demonstrating that the managers in this portfolio are adept at choosing securities that generate returns above those of the benchmark index.
For investors, it is essential to take a closer look at the cost parameters, as costs are increasingly important for mutual fund investments. 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, TWGGX is a no-load fund. It has an expense ratio of 1.07% compared to the category average of 1.11%. TWGGX is actually cheaper than its peers when considering factors like cost.
Investors should be aware that with this product, the minimum initial investment is $2,500; each subsequent investment must be at least $50.
Overall, American Century Global Growth Investor (TWGGX) has a high ranking in Zacks Mutual Fund and, in conjunction with its relatively strong performance, medium downside risk and lower fees, American Century Global Growth Investor (TWGGX) seems like a good potential choice for investors right now.
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