Is ECMMX currently a solid bond fund?

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IIf you’ve been researching mutual fund bond funds, it wouldn’t be a good idea to start your search with Eaton Vance MA Municipals C (ECMMX). ECMMX has a Zacks mutual fund ranking of 5 (strong sell), which is based on nine predictor factors such as size, cost, and past performance.

Fund/manager history

ECMMX ends up in the Eaton Vance family, based in Boston, MA. Eaton Vance MA Municipals C debuted in July 2006. Since then, ECMMX has accumulated assets of approximately $6.21 million, according to the most recent information available. The current fund manager, Craig Brandon, has been in charge of the fund since February 2010.

Performance

Investors are naturally looking for high performance funds. ECMMX has a 5-year annualized total return of -0.02% and is in the bottom third among its peers in the category. Investors who prefer to analyze shorter time frames should look at its 3-year annualized total return of -1.58%, which puts it in the bottom third over this period.

When looking at a fund’s performance, it’s also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 11.33%, the standard deviation of the ECMMX over the past three years is 4.92%. Over the last 5 years, the fund’s standard deviation is 4.13% against a category average of 9.98%. This makes the fund less volatile than its peers over the past half-decade.

This fund has a beta of 0.8, which means it is less volatile than a general fixed income index. Taking this into account, ECMMX has a negative alpha of -1.77, which measures performance on a risk-adjusted basis.

Ratings

Investors should also consider a bond’s rating, which is a rating (“AAA” to “D”) assigned to a bond that indicates its credit quality. With this letter scale in mind, ECMMX has 73.58% high quality bonds rated at least “AA” or better, while 25.46% are medium quality, with ratings from “A” to “BBB”. The fund has an average quality of AA and focuses on high quality securities.

Expenses

Costs are increasingly important for investing in mutual funds, especially as competition intensifies in this market. And all other things being equal, a lower-cost product will outperform its otherwise identical counterpart, so it’s essential for investors to take a closer look at these metrics. In terms of fees, ECMMX is a no-load fund. It has a spend rate of 1.40% compared to the category average of 0.79%. Cost-wise, ECMMX is actually more expensive than its peers.

Investors should be aware that with this product the minimum initial investment is $1,000; each subsequent investment has no minimum amount.

Conclusion

Overall, Eaton Vance MA Municipals C (ECMMX) has a low Zacks Mutual Fund ranking, and in conjunction with its relatively poor performance, better downside risk and higher fees, this fund seems like a top choice. somewhat weak for investors at the moment.

For more information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, be sure to go to www.zacks.com/funds/mutual-funds for more information . And don’t forget that Zacks has all your equity needs covered too! Be sure to check out Zacks.com for more information on our filtering capabilities, rankings, and all of our articles.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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