Is Invesco Comstock A (ACSTX) a Strong Mutual Fund Pick Right Now?

There are plenty of choices in the Large Cap Value category, but where should you start your research? Well, one fund that might be worth investigating is Invesco Comstock A (ACSTX). ACSTX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveACSTX is one of many Large Cap Value mutual funds to choose from. These funds invest in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This strategy can often produce low P/E ratios and high dividend yields; however, growth levels are oftentimes cut back. These funds' high growth opportunities are slowed even more since large-cap stocks are usually in more stable industries with low to moderate growth prospects. Thus, investors interested in a stable income stream find Large Cap Value funds very appealing.History of Fund/ManagerInvesco is responsible for ACSTX, and the company is based out of Kansas City, MO. The Invesco Comstock A made its debut in October of 1968 and ACSTX has managed to accumulate roughly $7.15 billion in assets, as of the most recently available information. The fund's current manager is a team of investment professionals.PerformanceOf course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 17.67%, 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 14.58%, 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. ACSTX's standard deviation over the past three years is 16.02% compared to the category average of 14.26%. Over the past 5 years, the standard deviation of the fund is 17.34% compared to the category average of 13.79%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. ACSTX has a 5-year beta of 0.9, which means it is likely to be less volatile than the market average. Because alpha represents a portfolio's 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. With a positive alpha of 4, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.HoldingsExploring 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 principally on equities that are traded in the United States.Right now, 92.68% of this mutual fund's holdings are stocks, with an average market capitalization of $213.27 billion. The fund has the heaviest exposure to the following market sectors:FinanceTechnologyNon-DurableTurnover is 52%, which means, on average, the fund makes fewer trades than comparable funds.ExpensesAs 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, ACSTX is a load fund. It has an expense ratio of 0.79% compared to the category average of 0.94%. From a cost perspective, ACSTX 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 consideration. Returns would be less if those were included.Bottom LineOverall, Invesco Comstock A ( ACSTX ) 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.For additional information on this product, or to compare it to other mutual funds in the Large Cap Value, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? 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Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (ACSTX): 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