Is American Funds Investor Company of America A (AIVSX) a Strong Mutual Fund Pick Right Now?

On the lookout for a Large Cap Blend fund? Starting with American Funds Investor Company of America A (AIVSX) is one possibility. AIVSX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveAIVSX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a " buy and hold " mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.History of Fund/ManagerAmerican Funds is based in Los Angeles, CA, and is the manager of AIVSX. American Funds Investor Company of America A debuted in December of 1933. Since then, AIVSX has accumulated assets of about $93.12 billion, according to the most recently available information. A team of investment professionals is the fund's current manager.PerformanceOf course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 15.76%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 14.74%, 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 14.29%, the standard deviation of AIVSX over the past three years is 15.1%. Over the past 5 years, the standard deviation of the fund is 14.96% compared to the category average of 15.28%. This makes the fund less volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 0.9, 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. AIVSX's 5-year performance has produced a positive alpha of 1.19, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.ExpensesCosts 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, AIVSX is a load fund. It has an expense ratio of 0.56% compared to the category average of 0.94%. So, AIVSX is actually cheaper than its peers from a cost perspective.Investors should also note that the minimum initial investment for the product is $250 and that each subsequent investment needs to be at $50Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, American Funds Investor Company of America A ( AIVSX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.Your research on the Large Cap Blend segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (AIVSX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks