If you have been looking for Large Cap Growth funds, a place to start could be American Funds Growth Fund of America C (GFACX). GFACX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
GFACX is classified in the Large Cap Growth segment by Zacks, an area full of possibilities. Companies are usually considered to be large-cap if their stock market valuation is more than $10 billion. Large Cap Growth mutual funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers.
GFACX is a part of the American Funds family of funds, a company based out of Los Angeles, CA. American Funds Growth Fund of America C debuted in March of 2001. Since then, GFACX has accumulated assets of about $3.84 billion, according to the most recently available information. The fund’s current manager is a team of investment professionals.
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 14.82%, and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 23.67%, 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. Over the past three years, GFACX’s standard deviation comes in at 17.65%, compared to the category average of 14.19%. Over the past 5 years, the standard deviation of the fund is 18.94% compared to the category average of 13.75%. This makes the fund more volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 1.11, which means it is hypothetically 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. With a negative alpha of -2.59, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.