ACFOX Definition
ACFOX (American Century Growth Funds, Inc.) seeks long-term capital growth. The fund uses a quantitative investment process designed to identify common stocks of companies that currently have.
ACFOX Focused Dynamic Growth Fund is an open-end equity mutual fund launched and managed by American Century Investment Management Inc. ACFOX invests in public equity markets of the United States. It invests in stocks of companies working across diversified sectors. It invests in growth stocks of companies across diversified market capitalization.
ACFOX Description
ACFOX has 35 stock holdings and 0 bond holdings.
The fund seeks to benchmark the concert of its portfolio compared to the Russell 1000 Growth Index. American Century Growth Funds, Inc. – Focused Dynamic Growth Fund on May 31, 2006, in the United States.
The investment seeks long-term resource growth. The portfolio manager looks for stocks of early and rapid stage growth companies. Portfolio manager makes their investment decisions based primarily on their analysis of individual companies rather than on broad economic forecasts. The portfolio managers use various analytical research tools and techniques to identify the stocks of companies that meet their investment criteria. Under normal market conditions, portfolio managers seek securities of companies whose earnings or revenues are growing and growing at an accelerated pace. Benchmark: Russell 1000 Growth TR USD.
In the last ten years, ACFOX had nine up years and one down year.
The team has considerable experience working together. Co-lead managers Keith Lee and Michael Li have been running large-growth strategies at the firm going back to the early 2000s and became lead managers here in June 2016. Lee and Li receive additional management support from Prabha Ram and Henry He and have a stable five-person team backing them.
ACFOX Advantages
That is to say, the team leverages the same process it uses on its two other charges. Those strategies focus on finding names with sustainable competitive advantages, a history of high profits, good growth prospects to keep them that way, or improving fundamentals. The team employs a quantitative model to help filter the universe and then dive deep into company financials. This in-depth fundamental research process has helped the team discover potential market disruptors and offer rapid growth opportunities with a long runway.
Performance
Over the past year, the fund returned 85.44 percent, 31.77 percent in three years, 28.31 percent in the past five years, and 18.50 percent in the last decade.
Fees
Fees are Below Average related to funds in the same category. American Century Focused Dynamic Gr Fd has an expense ratio of 0.85 percent.
Fund Size Comparison
One place ACFOX differs is in its total assets under management. It is a good indication of how many other investors trust this fund. A large fund by itself doesn’t mean it’s a good fund, but it is one thing to consider when figuring out how to select the correct fund.
Investing in high-growth firms is risky if their earnings growth expectations don’t materialize, but so far, investors have benefited.
ACFOX Disadvantages
ACFOX can perform differently from the market and can be more volatile than other types of supplies. Stock markets are hot-blood and can decline significantly in response to adverse issuer, political, regulatory, demand, economic or other developments.
Past performance has no guarantee of future results.
Risk is High paralleled to funds in the same group, according to Morningstar.
The most significant disadvantage of mutual funds is that you’re usually limited to the funds on your investment platform. Some venues offer mutual funds from other platforms, but they may charge a purchase or redemption fee. If you’re investing in Fidelity, you’ll want to pick Fidelity mutual funds (or any ETF). Same with Vanguard.
Conclusion
ACFOX is rated based on total return. Each fund is ranked inside a universe of funds with similar investment objectives. Rankings include the reinvestment of dividends and capital gains but exclude the effect of a fund’s sales load, if applicable. Multiple stake classes of a fund have a standard portfolio but impose different expense structures.
The resulting portfolio concentrated in 30-45-stocks with a high growth tilt. The fund’s average estimated five-year earnings-growth rate ranked in the large-growth Morningstar Category’s top decile. This fund’s focus on emerging-markets disruptors has led to high volatility. Some of the fund’s most significant holdings are its most volatile, such as electric car maker Tesla TSLA and payment processor Square SQ. While volatile, they have also been enormous winners for the fund. To help mitigate some risk, the fund holds stable growth firms like Amazon.com AMZN and Visa V.
During the managers’ short tenure, strong stock-picking has helped deliver solid results. Since the managers’ June 2016 start through October 2020, the Investor shares’ 27.3% annualized gain beat the Russell 1000 Growth’s 20.2% return and bested 95% of its large-growth peers.
This method combines more fundamental and traditional techniques such as stock price forecasting, technical analysis, analysts consensus, earnings estimates, and various momentum models.