Is Vanguard Target Retirement Income Fund (VTINX) a Strong Mutual Fund Pick Right Now?

Looking for an Allocation Balanced fund? You may want to consider Vanguard Target Retirement Income Fund (VTINX) as a possible option. While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.ObjectiveVTINX is one of many Zacks' Allocation Balanced mutual funds to pick from. Allocation Balanced funds seek to invest in a balance of asset types, like stocks, bonds, and cash, though including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation. Investors utilize Allocation Balanced funds as a way to get a good start with diversified mutual funds, as well as for core holdings in a portfolio of funds.History of Fund/ManagerVTINX finds itself in the Vanguard Group family, based out of Malvern, PA. Vanguard Target Retirement Income Fund debuted in October of 2003. Since then, VTINX has accumulated assets of about $35.25 billion, according to the most recently available information. A team of investment professionals is the fund's current manager.PerformanceInvestors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 3.99%, and it sits in the middle 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 2.73%, which places it in the middle 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. The standard deviation of VTINX over the past three years is 8.44% compared to the category average of 8.87%. Over the past 5 years, the standard deviation of the fund is 7.92% compared to the category average of 8.34%. This makes the fund less volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 0.41, the fund 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 negative alpha of -4.26, 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, VTINX is a no load fund. It has an expense ratio of 0.08% compared to the category average of 0.35%. Looking at the fund from a cost perspective, VTINX 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 $1Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineDon't stop here for your research on Allocation Balanced funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare VTINX to its peers as well for additional information. 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Click to get this free report Get Your Free (VTINX): 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