Zacks Equity Research Zacks

Published

If investors are looking at the Sector - Tech fund category, Columbia Seligman Communications and Information A (SLMCX) could be a potential option. SLMCX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

The world of Sector - Tech funds is an area filled with options, and SLMCX is one of them. Sector - Tech mutual funds allow investors to own a stake in a notoriously volatile sector with a much more diversified approach. Tech companies can be in any number of industries such as semiconductors, software, internet, networking just to name a few.

History of Fund/Manager

Columbia is based in Kansas City, MO, and is the manager of SLMCX. Columbia Seligman Communications and Information A made its debut in June of 1983, and since then, SLMCX has accumulated about $7.08 billion in assets, per the most up-to-date date available. The funds current manager is a team of investment professionals.

Performance

Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 29.52%, 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 30.08%, which places it in the top third during this time-frame.

When looking at a funds performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. SLMCXs standard deviation over the past three years is 24.18% compared to the category average of 16.2%. Over the past 5 years, the standard deviation of the fund is 20.21% compared to the category average of 13.48%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 1.17, so investors should note that it is hypothetically more volatile than the market at large. Because alpha represents a portfolios performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. SLMCX has generated a positive alpha over the past five years of 8.69, demonstrating that managers in this portfolio are skilled in picking 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, SLMCX is a load fund. It has an expense ratio of 1.21% compared to the category average of 1.35%. From a cost perspective, SLMCX is actually cheaper than its peers.

This fund requires a minimum initial investment of $2,000, while there is no minimum for each subsequent investment.

Bottom Line

Overall, Columbia Seligman Communications and Information A ( SLMCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

For additional information on this product, or to compare it to other mutual funds in the Sector - Tech, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 Crypto-Related Stocks Now >>

Click to get this free report

Get Your Free (SLMCX): Fund Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More

Most Popular

Say hello

Find us at the office

Chappa- Adamitis street no. 38, 81811 Tripoli, Libya

Give us a ring

Alda Runion
+69 213 130 910
Mon - Fri, 10:00-22:00

Say hello