Is Kinetics Paradigm Fund No Load (WWNPX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Global – Equity fund? Well, Kinetics Paradigm Fund No Load (WWNPX) would not be a good potential starting point right now. WWNPX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes WWNPX as Global – Equity, which is a segment packed with options. Global – Equity mutual funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. They also provide an investment technique that leverages the diverse nature of the global economy in the hopes of providing a stable return.
History of Fund/Manager
WWNPX is a part of the Kinetics family of funds, a company based out of Sleepy Hollow, NY. Kinetics Paradigm Fund No Load made its debut in February of 2003, and since then, WWNPX has accumulated about $457.25 million in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 14.54%, 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 19.08%, which places it in the top 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. Compared to the category average of 12.65%, the standard deviation of WWNPX over the past three years is 39.34%. Looking at the past 5 years, the fund’s standard deviation is 36.01% compared to the category average of 14.7%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.76, which means it is hypothetically less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio’s performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. WWNPX has generated a positive alpha over the past five years of 8.06, demonstrating that managers in this portfolio are skilled in picking 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, WWNPX is a no load fund. It has an expense ratio of 1.67% compared to the category average of 0.97%. Looking at the fund from a cost perspective, WWNPX is actually more expensive than its peers.
This fund requires a minimum initial investment of $2,500, while 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, Kinetics Paradigm Fund No Load ( WWNPX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, Kinetics Paradigm Fund No Load ( WWNPX ) looks like a poor potential choice for investors right now.
Don’t stop here for your research on Global – Equity 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 WWNPX to its peers as well for additional information. And don’t forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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This article originally published on Zacks Investment Research (zacks.com).