Yahoo Finance Is ECMMX a Strong Bond Fund Right Now?
On the lookout for a Muni - Bonds fund? Starting with Eaton Vance MA Municipals C (ECMMX) should not be a possibility at this time. ECMMX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
ECMMX is one of many Muni - Bonds funds to choose from. Muni - Bonds funds invest in debt securities issued by states and local municipalities, which are typically used to pay for infrastructure construction, schools, and other government functions. These securities can be backed by taxes (revenue bonds), but others are known as " general obligation " and are not necessarily backed by a defined source. These bonds are especially attractive because of their inherent tax benefits.
History of Fund/Manager
Eaton Vance is based in Boston, MA, and is the manager of ECMMX. Eaton Vance MA Municipals C debuted in July of 2006. Since then, ECMMX has accumulated assets of about $2.34 million, according to the most recently available information. The fund's current manager, Craig Brandon, has been in charge of the fund since February of 2010.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of -0.84%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -2.82%, which places it in the bottom 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 ECMMX over the past three years is 7.46% compared to the category average of 11.9%. Looking at the past 5 years, the fund's standard deviation is 6.45% compared to the category average of 12.28%. This makes the fund less volatile than its peers over the past half-decade.
ECMMX carries a beta of 0.83, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -1.73, which measures performance on a risk-adjusted basis.
Expenses
Costs 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, ECMMX is a no load fund. It has an expense ratio of 0.09% compared to the category average of 0.84%. Looking at the fund from a cost perspective, ECMMX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, better downside risk, and lower fees, Eaton Vance MA Municipals C ( ECMMX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.
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