Is Janus Henderson Enterprise I (JMGRX) a Strong Mutual Fund Pick Right Now?

There are plenty of choices in the Mid Cap Growth category, but where should you start your research? Well, one fund that might be worth investigating is Janus Henderson Enterprise I (JMGRX). JMGRX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

Zacks categorizes JMGRX 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/Manager

Janus Fund is responsible for JMGRX, and the company is based out of Boston, MA. Janus Henderson Enterprise I debuted in November of 2005. Since then, JMGRX has accumulated assets of about $8.75 billion, according to the most recently available information. Brian Demain is the fund's current manager and has held that role since November of 2007.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 6.58%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 10.74%, 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. JMGRX's standard deviation over the past three years is 14.25% compared to the category average of 11.85%. Looking at the past 5 years, the fund's standard deviation is 16.04% compared to the category average of 13.72%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. JMGRX has a 5-year beta of 0.94, which means it is likely to be less 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. JMGRX has generated a negative alpha over the past five years of -5.05, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, JMGRX is a no load fund. It has an expense ratio of 0.77% compared to the category average of 0.95%. So, JMGRX is actually cheaper than its peers from a cost perspective.

While the minimum initial investment for the product is $2,500, investors should also note that 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 Line

Overall, Janus Henderson Enterprise I ( JMGRX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Janus Henderson Enterprise I ( JMGRX ) looks like a good potential choice for investors right now.

This could just be the start of your research on JMGRX in the Mid Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.

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This article originally published on Zacks Investment Research (zacks.com).

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