Capital Mutual Fund Buy Hold or Sell Recommendation

RIREX
 Fund
  

USD 64.20  0.65  1.02%   

Assuming the 90 days horizon and your slightly conservative level of risk, our recommendation regarding Capital Income Builder is 'Cautious Hold'. Macroaxis provides Capital Income buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding RIREX positions. The advice algorithm takes into account all of Capital Income's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Capital Income's buy-and-hold perspective. Additionally, take a look at Capital Income Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual funds such as Capital and provide practical buy, sell, or hold recommendation based on selected investing horizon and risk tolerance towards Capital Income Builder.

Execute Capital Income Buy or Sell Advice

The Capital recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Capital Income Builder. Macroaxis does not own or have any residual interests in Capital Income Builder or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Capital Income's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Capital IncomeBuy Capital Income
Cautious Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Not Available
Details
For the selected time horizon Capital Income Builder has a Mean Deviation of 0.8303, Standard Deviation of 1.05 and Variance of 1.1
Macroaxis provides unbiased investment recommendation on Capital Income Builder that should be used to complement current analysts and expert consensus on Capital Income Builder. Our trade advice engine determines the fund's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. Use Capital Income Builder five year return and bond positions weight to ensure your buy or sell decision on Capital Income Builder is adequate.

Capital Income Trading Alerts and Improvement Suggestions

Capital Income is unlikely to experience financial distress in the next 2 years

Capital Income Returns Distribution Density

The distribution of Capital Income's historical returns is an attempt to chart the uncertainty of Capital Income's future price movements. The chart of the probability distribution of Capital Income stock daily returns describes the distribution of returns around its average expected value. We use Capital Income Builder price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Capital Income returns is essential to provide solid investment advice for Capital Income.
Mean Return-0.0072Value At Risk-1.46
Potential Upside1.66Standard Deviation1.05
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Capital Income historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Capital Income Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Capital Income or American Funds sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Capital Income's price will be affected by overall mutual fund market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Capital fund's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.02
β
Beta against DOW0.08
σ
Overall volatility
1.05
Ir
Information ratio -0.08

Capital Income Volatility Alert

Capital Income Builder exhibits very low volatility with skewness of 0.43 and kurtosis of 0.47. However, we advise investors to further study Capital Income Builder technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Capital Income's mutual fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Capital Income's mutual fund price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Capital Income Fundamentals Vs Peers

Comparing Capital Income's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Capital Income's direct or indirect competition across all of the common fundamentals between Capital Income and the related equities. This way, we can detect undervalued stocks with similar characteristics as Capital Income or determine the mutual funds which would be an excellent addition to an existing portfolio. Peer analysis of Capital Income's fundamental indicators could also be used in its relative valuation, which is a method of valuing Capital Income by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Capital Income to competition
FundamentalsCapital IncomePeer Average
Price to Earning18.22 X6.53 X
Price to Book2.47 X0.74 X
Price to Sales1.86 X0.61 X
One Year Return0.66 %4.15 %
Three Year Return1.58 %3.60 %
Five Year Return2.66 %3.24 %
Ten Year Return6.63 %1.79 %
Net Asset108.6 B4.11 B
Last Dividend Paid0.40.65
Cash Position Weight4.87 %10.61 %
Equity Positions Weight71.56 %63.90 %
Bond Positions Weight0.80 %11.24 %

About Capital Income Buy or Sell Advice

When is the right time to buy or sell Capital Income Builder? Buying financial instruments such as Capital Mutual Fund isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Capital Income in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Drugs Thematic Idea Now

Drugs
Drugs Theme
Companies involved in medical and pharmaceutical drug research, manufacturing, and delivery. The Drugs theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Drugs Theme or any other thematic opportunities.
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Additionally, take a look at Capital Income Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Capital Income Builder information on this page should be used as a complementary analysis to other Capital Income's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

Complementary Tools for Capital Mutual Fund analysis

When running Capital Income Builder price analysis, check to measure Capital Income's 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 Capital Income is operating at the current time. Most of Capital Income's value examination focuses on studying past and present price action to predict the probability of Capital Income's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Capital Income's price. Additionally, you may evaluate how the addition of Capital Income to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Capital Income's value and its price as these two are different measures arrived at by different means. Investors typically determine Capital Income value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Capital Income's 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.