Is the TIAA-CREF Growth & Income Retail (TIIRX) a good mutual fund choice right now?

HHaving trouble finding a mutual fund equity ratio fund? TIAA-CREF Growth & Income Retail (TIIRX) is a potential starting point. TIIRX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine predictor factors such as size, cost, and past performance.

Fund/manager history

TIIRX is part of the TIAA-CREF family of funds, a company based in Boston, MA. The TIAA-CREF Growth & Income Retail debuted in March 2006 and TIIRX has managed to accumulate approximately $1.66 billion in assets, according to the most recent information available. The current fund manager, Susan Kempler, has been in charge of the fund since March 2006.

Performance

Clearly, what investors are looking for in these funds is strong performance relative to their peers. This particular fund has generated a 5-year annualized total return of 15.3% and is in the middle third of its peers in the category. If you’re interested in shorter timeframes, don’t discount the fund’s 3-year annualized total return of 19.01%, which puts it in the middle third over that time frame.

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. TIIRX’s standard deviation over the past three years is 18.36% from the category average of 14.9%. The fund’s standard deviation over the last 5 years is 16.61% compared to the category average of 13.09%. This makes the fund more volatile than its peers over the past half-decade.

Risk factors

Investors should note that the fund has a 5-year beta of 1.05, which means it is hypothetically more volatile than the market as a whole. 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 produced a negative alpha of – 1.84 over the last 5 years, which shows that the managers of this portfolio have difficulty choosing securities that generate returns above the benchmark index.

Assets

Exploring the stock 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 whether there are any inherent biases in their approach. For this particular fund, the focus is primarily on stocks that are traded in the United States.

The mutual fund currently holds 88.68% of its holdings in stocks, which have an average market capitalization of $444.06 billion. The fund has the highest exposure to the following market sectors:

  1. Technology
  2. Finance
  3. Retail business
  4. Industrial Cyclic

Expenses

As competition intensifies in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low cost product will perform better, all other things being equal. Thus, it is essential for investors to take a closer look at the cost parameters. In terms of fees, TIIRX is a no-load fund. It has a spend rate of 0.69% compared to the category average of 0.99%. Thus, TIIRX is actually cheaper than its peers from a cost perspective.

Investors should also note that the minimum initial investment for the product is $2,500 and each subsequent investment must be $100.

Conclusion

Overall, TIAA-CREF Growth & Income Retail (TIIRX) has a high ranking of Zacks Mutual Fund, and in conjunction with its relatively similar performance, medium downside risk and lower fees, this fund seems like a good choice. potential for investors right now.

This might just be the start of your search for TIIRX in the Mutual Fund Stock Report category. Consider going to www.zacks.com/funds/mutual-funds for more information on this fund, and all the others we rank for additional information as well. Want to know more ? We have a full suite of stock tools that you can also use to find the best picks for your portfolio, no matter what type of investor you are.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dolores W. Simon