Is JPMorgan US Rsrch Enhanc Equity A (JDEAX) a Strong Mutual Fund Pick Right Now?

Yahoo

3 days ago

If you have been looking for Large Cap Blend funds, a place to start could be JPMorgan US Rsrch Enhanc Equity A (JDEAX). JDEAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that JDEAX is a Large Cap Blend option, an area loaded with different options. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a " buy and hold " mindset. Additionally, blended funds mix large, more established firms into their portfolios, giving investors exposure to value and growth opportunities.
History of Fund/Manager
JDEAX finds itself in the J.P. Morgan family, based out of Boston, MA. Since JPMorgan US Rsrch Enhanc Equity A made its debut in January of 1997, JDEAX has garnered more than $572.98 million in assets. The fund is currently managed by Raffaele Zingone who has been in charge of the fund since July of 2002.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 16.92%, 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 19.58%, which places it in the top 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. Compared to the category average of 14.79%, the standard deviation of JDEAX over the past three years is 15.65%. Over the past 5 years, the standard deviation of the fund is 16.37% compared to the category average of 14.33%. 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, which means it is hypothetically as volatile as 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 positive alpha of 0.26, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
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.
As of the last filing date, the mutual fund has 90.42% of its assets in stocks, and these companies have an average market capitalization of $444.91 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
Turnover is 39%, which means, on average, the fund makes fewer trades than the average comparable fund.
Expenses
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, JDEAX is a load fund. It has an expense ratio of 0.60% compared to the category average of 0.87%. Looking at the fund from a cost perspective, JDEAX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, JPMorgan US Rsrch Enhanc Equity A ( JDEAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, JPMorgan US Rsrch Enhanc Equity A ( JDEAX ) looks like a good potential choice for investors right now.
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