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Is Oppenheimer SteelPath MLP Select 40 A (MLPFX) a Strong Mutual Fund Pick Right Now?

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Any investors hoping to find a Mutual Fund Equity Report fund could think about starting with Oppenheimer SteelPath MLP Select 40 A (MLPFX - Free Report) . MLPFX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

Invesco is responsible for MLPFX, and the company is based out of Kansas City, MO. Since Oppenheimer SteelPath MLP Select 40 A made its debut in April of 2010, MLPFX has garnered more than $328.26 million in assets. The fund is currently managed by Stuart Cartner who has been in charge of the fund since April of 2010.

Performance

Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 0.2%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 3.31%, 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. Compared to the category average of 22.75%, the standard deviation of MLPFX over the past three years is 45.03%. Over the past 5 years, the standard deviation of the fund is 35.86% compared to the category average of 17.26%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.6, the fund is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. The fund has produced a negative alpha over the past 5 years of -17.38, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, MLPFX is a load fund. It has an expense ratio of 1.20% compared to the category average of 1.50%. So, MLPFX is actually cheaper than its peers from a cost perspective.

While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $50.

Bottom Line

Overall, Oppenheimer SteelPath MLP Select 40 A ( MLPFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Oppenheimer SteelPath MLP Select 40 A ( MLPFX ) looks like a good potential choice for investors right now.

Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare MLPFX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.


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