MSEGX vs. MACGX: Best Morgan Stanley Funds for Large Growth?

Someone asks:

I’m about to re-balance my mutual funds in my Roth IRA and Rollover IRA. I’m considering 35% MACGX, 35% MSEGX, 20% FCPEX, still looking for an international fund. I think this is a good mix…what do you think?

Answers:

Cat C:

MACGX has a really high expense ratio. You would do better by looking at the Fidelity funds like FZROX, and other newer funds. Look forward an expense ratio of 0.01-0.03. You don’t make money by giving it to the fund managers!

David O:

Never worry about expenses if the returns more than make up for it. I’m up 130% in less than a year on MACGX so I don’t mind the 1% expense ratio.

MACGX has been on a tear. It’s history is decent. What I do when it’s on a tear like this is take profits on occasion to move into my other funds. Although that did cost me some money in the short term. It’s a little pricey to buy into at its current vs historical cost. They are certainly on an incredible run. I guess if you wanted to you could put in the minimum, but a 140% return is not sustainable. I’d second something like FOCPX which has been VERY solid for me.

Huy N:

Those look like terrible funds. Poor long term performance and high expense ratio. You should look at FXAIX by comparison; consistently upwards trend, minimal volatility, and very low expense ratio. FXAIX average return of 13.8% over 10 years. With very low expense ratio almost all of that money goes to you. FCPEX average return of 11% over 10 years and the higher expense ratio will eat up your gains. Think about it.

Mufi T:

What is the difference between MSEGX and CPOAX? They both seem large cap — are there different strategies behind these funds?

Harvir H:

I’m invested in MSEGX! Been great so far but when BGSAX becomes available I’ll probably transition to that Large Cap Growth Fund.

Bryant P:

I would take a look into Index Funds to start off with. I just read a book and they kept mentioning VTSAX Total Market Index Fund. My very first investment was actually VOO S&P 500 ETF and I still put money into it.

Lakramon J:

Hello fellow investors, I’m new at this and looking for some advice. I hold FSPGX in my Roth and taxable accounts. I’m considering adding Morgan Stanley MACGX to compliment my Roth account. I’m aware of the $2500. investment fee. Any recommendations on whether this is a good move or not. I’m 50 yrs old and I need all the growth I can get.

Jason P:

Target date funds are good for someone that is risk-averse and not interested in transitioning funds at least quarterly. FZROX is a bit more aggressive because it is strictly equities (no bonds) but is still a simple, set it and forget it fund. If it is long-term, there are a couple large-cap growth funds that perform well (FOCPX and MSEGX) because they have long-term managers that have produced results.

Micheal N:

Look at the 10 year track record of the fund. They have done phenomenal this year with picking WFH stocks, but it is on par with (or below) cheaper, no minimum funds like FBGRX and FOCPX over the last several years.