Is MFS Value R6 (MEIKX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Report for MEIKX
On the lookout for a Mutual Fund Equity Report fund? Starting with MFS Value R6 (MEIKX) is one possibility. MEIKX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
MFS is responsible for MEIKX, and the company is based out of Boston, MA. The MFS Value R6 made its debut in June of 2012 and MEIKX has managed to accumulate roughly $22.61 billion in assets, as of the most recently available information. The fund's current manager is a team of investment professionals.
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 11.63%, and is in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 12.98%, which places it in the top third during this time-frame.
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, MEIKX's standard deviation comes in at 18.78%, compared to the category average of 15.57%. The standard deviation of the fund over the past 5 years is 15.48% compared to the category average of 12.85%. This makes the fund more volatile than its peers over the past half-decade.
The fund has a 5-year beta of 0.96, 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. With a negative alpha of -4.75, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Examining 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 largely on equities that are traded in the United States.
Right now, 90.27% of this mutual fund's holdings are stocks, and these companies have an average market capitalization of $148.44 billion. The fund has the heaviest exposure to the following market sectors:
- Industrial Cyclical
With turnover at about 8%, this fund makes fewer trades than comparable funds.
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, MEIKX is a no load fund. It has an expense ratio of 0.44% compared to the category average of 1%. MEIKX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Overall, MFS Value R6 ( MEIKX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar 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 Mutual Fund Equity Report 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 MEIKX to its peers as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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