Is American Century Global Growth Investor (TWGGX) a Strong Mutual Fund Pick Right Now?

If you’ve been stuck searching for Mutual Fund Equity Report funds, you might want to consider passing on by American Century Global Growth Investor (TWGGX) as a possibility. TWGGX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

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History of Fund/Manager

TWGGX is a part of the American Century family of funds, a company based out of Kansas City, MO. American Century Global Growth Investor made its debut in December of 1998, and since then, TWGGX has accumulated about $357.95 million in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. TWGGX has a 5-year annualized total return of 7.36% and it sits 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 3.85%, 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. Over the past three years, TWGGX’s standard deviation comes in at 20.83%, compared to the category average of 17.69%. The fund’s standard deviation over the past 5 years is 18.47% compared to the category average of 15.45%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.94, the fund is likely to be less volatile than the market average. 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 negative alpha of -1.34. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

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, TWGGX is a no load fund. It has an expense ratio of 1.12% compared to the category average of 1.10%. TWGGX is actually more expensive than its peers when you consider factors like cost.

While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $50.

Bottom Line

Overall, American Century Global Growth Investor ( TWGGX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, American Century Global Growth Investor ( TWGGX ) looks like a poor potential choice for investors right now.

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