Is Morgan Stanley Inst Discovery I (MPEGX) a Strong Mutual Fund Pick Right Now?

Having trouble finding a Mid Cap Growth fund? Morgan Stanley Inst Discovery I (MPEGX) is a potential starting point. MPEGX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveZacks categorizes MPEGX as Mid Cap Growth, a segment packed with options. Mid Cap Growth mutual funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. A firm is typically considered to be a growth stock if it consistently posts impressive sales and/or earnings growth.History of Fund/ManagerMorgStanley is based in New York, NY, and is the manager of MPEGX. The Morgan Stanley Inst Discovery I made its debut in March of 1990 and MPEGX has managed to accumulate roughly $521.68 million 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. MPEGX has a 5-year annualized total return of 1.34%, and it sits in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 25.73%, 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. MPEGX's standard deviation over the past three years is 31.52% compared to the category average of 15.37%. The fund's standard deviation over the past 5 years is 34.68% compared to the category average of 14.93%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 1.42, the fund is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -12.09. This means that managers in this portfolio find it difficult to pick 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, MPEGX is a no load fund. It has an expense ratio of 0.74% compared to the category average of 0.97%. So, MPEGX is actually cheaper than its peers from a cost perspective.This fund requires a minimum initial investment of $1.00 million, while there is no minimum for each subsequent investment.Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.Bottom LineOverall, even with its comparatively weak performance, worse downside risk, and lower fees, Morgan Stanley Inst Discovery I ( MPEGX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.Want even more information about MPEGX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>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 (MPEGX): 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