Is Columbia Global Technology Growth A (CTCAX) Currently a Top Choice Among Mutual Funds?

Exploring Columbia Global Technology Growth A (CTCAX)

If you're considering investing in a technology-focused mutual fund, Columbia Global Technology Growth A (CTCAX) is worth a look. According to Zacks Mutual Fund Rank, CTCAX holds a top rating of 1 (Strong Buy), reflecting factors such as fund size, expenses, and historical returns.

Fund Purpose

CTCAX belongs to the Sector - Tech group, which offers investors a variety of options. These funds provide exposure to the technology sector, known for its higher risk profile. Companies in this category span industries including semiconductors, software, internet services, and networking.

Background and Management

Managed by Columbia, headquartered in Kansas City, MO, CTCAX was launched in November 2002. As of the latest data, the fund has gathered approximately $1.09 billion in assets. Rahul Narang has overseen the fund since July 2012.

Returns and Performance

Performance is a key consideration for investors. Over the past five years, CTCAX has delivered an annualized return of 15.92%, placing it among the top third of its peers. For those interested in more recent results, the three-year annualized return stands at 32.67%, also ranking in the top third.

Keep in mind that reported returns may not include all fees and expenses. Any additional charges would reduce overall performance. Sales charges are not reflected in the total returns; including them would lower the figures.

Volatility is another important metric. CTCAX's three-year standard deviation is 17.93%, higher than the category average of 12.82%. Over five years, its standard deviation is 21.42%, compared to the average of 14.36%, indicating greater fluctuations than similar funds.

Risk Assessment

With a five-year beta of 1.27, CTCAX tends to be more volatile than the broader market. The fund's five-year alpha is -1.26, measured against the S&P 500 benchmark. This suggests the fund has struggled to outperform the market on a risk-adjusted basis.

Portfolio Holdings

Reviewing a fund's holdings can reveal the manager's investment approach and any potential biases. CTCAX primarily invests in U.S.-listed equities. Currently, 84.26% of its assets are allocated to stocks, with an average market capitalization of $788.90 billion. The fund's largest sector exposure is:

• Technology

With a turnover rate of 6%, CTCAX trades less frequently than many comparable funds.

Costs and Fees

Understanding expenses is crucial when selecting a mutual fund. Lower costs can lead to better performance, especially as competition increases. CTCAX is a load fund with an expense ratio of 1.16%.

The minimum initial investment required is $2,000, and there is no minimum for subsequent contributions.

Advisor fees are not included in the reported returns; if they were, performance would be lower.

Summary

CTCAX ranks among the top 20% of mutual funds tracked by Zacks, making it a strong contender for those seeking technology sector exposure.

You can also find in-depth information on CTCAX and explore tools to help you identify the best investments for your portfolio.