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Is Firsthand Technology Opportunities (TEFQX) a Strong Mutual Fund Pick Right Now?
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If you've been stuck searching for Sector - Tech funds, you might want to consider passing on by Firsthand Technology Opportunities (TEFQX - Free Report) as a possibility. TEFQX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
TEFQX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
Firsthand is based in San Jose, CA, and is the manager of TEFQX. The Firsthand Technology Opportunities made its debut in September of 1999 and TEFQX has managed to accumulate roughly $368.70 million in assets, as of the most recently available information. The fund is currently managed by Kevin M. Landis who has been in charge of the fund since September of 1999.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 39%, 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 35.61%, which places it in the top third during this time-frame.
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. The standard deviation of TEFQX over the past three years is 29.57% compared to the category average of 23.53%. The standard deviation of the fund over the past 5 years is 23.89% compared to the category average of 19.8%. 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 1.08, which means it is hypothetically more 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. The fund has produced a positive alpha over the past 5 years of 18.59, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, TEFQX is a no load fund. It has an expense ratio of 1.84% compared to the category average of 1.35%. Looking at the fund from a cost perspective, TEFQX is actually more expensive than its peers.
While the minimum initial investment for the product is $2,000, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, Firsthand Technology Opportunities ( TEFQX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Firsthand Technology Opportunities ( TEFQX ) looks like a poor potential choice for investors right now.
This could just be the start of your research on TEFQXin the Sector - Tech category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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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Is Firsthand Technology Opportunities (TEFQX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Sector - Tech funds, you might want to consider passing on by Firsthand Technology Opportunities (TEFQX - Free Report) as a possibility. TEFQX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
TEFQX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
Firsthand is based in San Jose, CA, and is the manager of TEFQX. The Firsthand Technology Opportunities made its debut in September of 1999 and TEFQX has managed to accumulate roughly $368.70 million in assets, as of the most recently available information. The fund is currently managed by Kevin M. Landis who has been in charge of the fund since September of 1999.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 39%, 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 35.61%, which places it in the top third during this time-frame.
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. The standard deviation of TEFQX over the past three years is 29.57% compared to the category average of 23.53%. The standard deviation of the fund over the past 5 years is 23.89% compared to the category average of 19.8%. 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 1.08, which means it is hypothetically more 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. The fund has produced a positive alpha over the past 5 years of 18.59, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, TEFQX is a no load fund. It has an expense ratio of 1.84% compared to the category average of 1.35%. Looking at the fund from a cost perspective, TEFQX is actually more expensive than its peers.
While the minimum initial investment for the product is $2,000, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, Firsthand Technology Opportunities ( TEFQX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Firsthand Technology Opportunities ( TEFQX ) looks like a poor potential choice for investors right now.
This could just be the start of your research on TEFQXin the Sector - Tech category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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.