Any investors hoping to find an Allocation Balanced fund could think about starting with Oppenheimer Portfolio Series Equity Investor A (OAAIX Quick QuoteOAAIX - Free Report) . OAAIX carries 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

Oppenheimer is based in Denver, CO, and is the manager of OAAIX. Oppenheimer Portfolio Series Equity Investor A made its debut in April of 2005, and since then, OAAIX has accumulated about $674.94 million in assets, per the most up-to-date date available. Caleb Wong is the fund's current manager and has held that role since March of 2007.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 11.15%, and is 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 11.38%, 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. Over the past three years, OAAIX's standard deviation comes in at 10.39%, compared to the category average of 8.34%. The fund's standard deviation over the past 5 years is 10.01% compared to the category average of 8.13%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. OAAIX lost 53.89% in the most recent bear market and underperformed its peer group by 17.76%. This could mean that the fund is a worse choice than comparable funds during a bear market.

Even still, the fund has a 5-year beta of 0.97, so investors should note that it is hypothetically as volatile as 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. OAAIX's 5-year performance has produced a negative alpha of -3.67, which means 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, OAAIX is a load fund. It has an expense ratio of 0.46% compared to the category average of 0.84%. From a cost perspective, OAAIX is actually cheaper than its peers.

This fund requires a minimum initial investment of $1,000, while there is no minimum for each subsequent investment.

Bottom Line

Overall, Oppenheimer Portfolio Series Equity Investor A has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Oppenheimer Portfolio Series Equity Investor A looks like a good potential choice for investors right now.

Don't stop here for your research on Allocation Balanced 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 OAAIX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.