Looking for a Mutual Fund Equity Report fund? You may want to consider American Funds New Perspective A (ANWPX) as a possible option. ANWPX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
ANWPX is a part of the American Funds family of funds, a company based out of Los Angeles, CA. American Funds New Perspective A made its debut in March of 1973, and since then, ANWPX has accumulated about $60.52 billion in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 8.78%, and it sits in the top 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 9.34%, 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. ANWPX’s standard deviation over the past three years is 20.93% compared to the category average of 15.85%. Over the past 5 years, the standard deviation of the fund is 18.34% compared to the category average of 14.07%. This makes the fund more volatile than its peers over the past half-decade.
With a 5-year beta of 1.01, the fund is likely to be as volatile as the market average. 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. Over the past 5 years, the fund has a negative alpha of -2.71. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, ANWPX is a load fund. It has an expense ratio of 0.71% compared to the category average of 1.10%. Looking at the fund from a cost perspective, ANWPX is actually cheaper than its peers.
While the minimum initial investment for the product is $250, investors should also note that each subsequent investment needs to be at least $50.
Overall, American Funds New Perspective A ( ANWPX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, American Funds New Perspective A ( ANWPX ) looks like a somewhat average choice for investors right now.
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