If you’re looking for a Mid Cap Growth fund category, then a potential option is Neuberger Berman Mid Cap Growth A (NMGAX). NMGAX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
NMGAX is part of the Mid Cap Growth section, a segment that boasts a wide array of possible selections. While Mid Cap Growth mutual funds choose companies with a stock market valuation between $2 billion and $10 billion, stocks in these funds are also expected to show broad considerable growth opportunities for investors compared to their peers. To be considered a growth stock, companies must consistently report impressive sales and/or earnings growth.
History of Fund/Manager
NMGAX is a part of the Neuberger family of funds, a company based out of New York, NY. Neuberger Berman Mid Cap Growth A made its debut in May of 1998, and since then, NMGAX has accumulated about $47.40 million in assets, per the most up-to-date date available. The fund’s current manager is a team of investment professionals.
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 20.67%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 20.51%, which places it in the middle 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. Compared to the category average of 15.97%, the standard deviation of NMGAX over the past three years is 22.08%. Over the past 5 years, the standard deviation of the fund is 17.95% compared to the category average of 13.15%. 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 1.05, so it is likely going to be 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. Over the past 5 years, the fund has a positive alpha of 1.93. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
As 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, NMGAX is a load fund. It has an expense ratio of 1.04% compared to the category average of 1.17%. NMGAX is actually cheaper than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $100.
Overall, Neuberger Berman Mid Cap Growth A ( NMGAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Neuberger Berman Mid Cap Growth A ( NMGAX ) looks like a somewhat average choice for investors right now.
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