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Is Oppenheimer Developing Markets I (ODVIX) a Strong Mutual Fund Pick Right Now?

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Having trouble finding a Non US - Equity fund? Well, Oppenheimer Developing Markets I (ODVIX - Free Report) would not be a good potential starting point right now. ODVIX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.

Objective

Zacks categorizes ODVIX as Non US - Equity, a segment stacked high with options. Non US - Equity mutual funds like to invest in companies outside of the United States, an important characteristic since global mutual funds are known to keep a good portion of their portfolio stateside. These kinds of funds can often extend across all cap levels, and will typically allocate their investments between emerging and developed markets.

History of Fund/Manager

ODVIX finds itself in the Oppenheimer family, based out of Denver, CO. The Oppenheimer Developing Markets I made its debut in December of 2011 and ODVIX has managed to accumulate roughly $13 billion in assets, as of the most recently available information. Justin Leverenz is the fund's current manager and has held that role since December of 2011.

Performance

Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 0.82%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 6.51%, 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 ODVIX over the past three years is 13.24% compared to the category average of 9.54%. Looking at the past 5 years, the fund's standard deviation is 14.23% compared to the category average of 9.29%. 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.

Even still, the fund has a 5-year beta of 1.01, so investors should note that it is hypothetically as volatile as the market at large. 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. ODVIX's 5-year performance has produced a negative alpha of -9.17, which means managers in this portfolio find it difficult to pick 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, ODVIX is a no load fund. It has an expense ratio of 0.86% compared to the category average of 1.28%. ODVIX is actually cheaper than its peers when you consider factors like cost.

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

Bottom Line

Overall, Oppenheimer Developing Markets I ( ODVIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Oppenheimer Developing Markets I ( ODVIX ) looks like a somewhat weak choice for investors right now.

Don't stop here for your research on Non US - Equity 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 ODVIX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.


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