American Funds 2050 Fund Manager Performance Evaluation

AALTX Fund  USD 20.04  0.13  0.65%   
The fund shows a Beta (market volatility) of -0.0254, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning American Funds are expected to decrease at a much lower rate. During the bear market, American Funds is likely to outperform the market.

Risk-Adjusted Performance

15 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in American Funds 2050 are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, American Funds may actually be approaching a critical reversion point that can send shares even higher in April 2024.
...more
Expense Ratio Date1st of January 2023
Expense Ratio0.7100
  

American Funds Relative Risk vs. Return Landscape

If you would invest  1,862  in American Funds 2050 on December 29, 2023 and sell it today you would earn a total of  142.00  from holding American Funds 2050 or generate 7.63% return on investment over 90 days. American Funds 2050 is currently producing 0.1224% returns and takes up 0.6078% volatility of returns over 90 trading days. Put another way, 5% of traded mutual funds are less volatile than American, and 98% of all traded equity instruments are likely to generate higher returns over the next 90 trading days.
  Expected Return   
       Risk  
Assuming the 90 days horizon American Funds is expected to generate 1.08 times less return on investment than the market. In addition to that, the company is 1.06 times more volatile than its market benchmark. It trades about 0.2 of its total potential returns per unit of risk. The NYSE Composite is currently generating roughly 0.23 per unit of volatility.

American Funds Current Valuation

Overvalued
Today
20.04
Please note that American Funds' price fluctuation is very steady at this time. At this time, the entity appears to be overvalued. American Funds 2050 shows a prevailing Real Value of $19.33 per share. The current price of the fund is $20.04. We determine the value of American Funds 2050 from analyzing fund fundamentals and technical indicators as well as its Probability Of Bankruptcy. In general, we favor acquiring undervalued mutual funds and dropping overvalued mutual funds since, at some point, mutual fund prices and their ongoing real values will blend.
Our valuation method for American Funds 2050 is useful when determining the fair value of the American mutual fund, which is usually determined by what a typical buyer is willing to pay for full or partial control of American Funds. Since American Funds is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Mutual Fund. However, American Funds' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  20.04 Real  19.33 Hype  20.04 Naive  20.04
The real value of American Mutual Fund, also known as its intrinsic value, is the underlying worth of American Funds 2050 Mutual Fund, which is reflected in its stock price. It is based on American Funds' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of American Funds' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence American Funds' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
19.33
Real Value
22.04
Upside
Estimating the potential upside or downside of American Funds 2050 helps investors to forecast how American mutual fund's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Funds more accurately as focusing exclusively on American Funds' fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
19.8519.9620.07
Details
Hype
Prediction
LowEstimatedHigh
19.4320.0420.65
Details
Naive
Forecast
LowNext ValueHigh
19.4320.0420.64
Details

American Funds Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for American Funds' investment risk. Standard deviation is the most common way to measure market volatility of mutual funds, such as American Funds 2050, and traders can use it to determine the average amount a American Funds' price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.2013

Best PortfolioBest Equity
Good Returns
Average Returns
Small Returns
CashAALTXAverage RiskHigh RiskHuge Risk
Negative Returns

Estimated Market Risk

 0.61
  actual daily
5
95% of assets are more volatile

Expected Return

 0.12
  actual daily
2
98% of assets have higher returns

Risk-Adjusted Return

 0.2
  actual daily
15
85% of assets perform better
Based on monthly moving average American Funds is performing at about 15% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of American Funds by adding it to a well-diversified portfolio.

American Funds Fundamentals Growth

American Mutual Fund prices reflect investors' perceptions of the future prospects and financial health of American Funds, and American Funds fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on American Mutual Fund performance.

About American Funds Performance

To evaluate American Funds 2050 Mutual Fund as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when American Funds generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare American Mutual Fund's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand American Funds 2050 market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents American's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
The fund normally invests a greater portion of its assets in fixed income, equity-income and balanced funds as it approaches and passes its target date. The advisor attempts to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds represent a variety of fund categories, including growth funds, growth-and-income funds, equity-income funds, balanced funds and fixed income funds. The fund categories represent differing investment objectives and strategies.

Things to note about American Funds 2050 performance evaluation

Checking the ongoing alerts about American Funds for important developments is a great way to find new opportunities for your next move. Mutual Fund alerts and notifications screener for American Funds 2050 help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
The fund holds about 7.48% of its assets under management (AUM) in cash
Evaluating American Funds' performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate American Funds' mutual fund performance include:
  • Analyzing American Funds' financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether American Funds' stock is overvalued or undervalued compared to its peers.
  • Examining American Funds' industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating American Funds' management team can have a significant impact on its success or failure. Reviewing the track record and experience of American Funds' management team can help you assess the Mutual Fund's leadership.
  • Pay attention to analyst opinions and ratings of American Funds' mutual fund. These opinions can provide insight into American Funds' potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating American Funds' mutual fund performance is not an exact science, and many factors can impact American Funds' mutual fund market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Funds 2050. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Complementary Tools for American Mutual Fund analysis

When running American Funds' price analysis, check to measure American Funds' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Funds is operating at the current time. Most of American Funds' value examination focuses on studying past and present price action to predict the probability of American Funds' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Funds' price. Additionally, you may evaluate how the addition of American Funds to your portfolios can decrease your overall portfolio volatility.
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Global Correlations
Find global opportunities by holding instruments from different markets
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Please note, there is a significant difference between American Funds' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Funds is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Funds' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.