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Is Dreyfus Natural Resources A (DNLAX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Sector - Energy fund? Starting with Dreyfus Natural Resources A (DNLAX - Free Report) is one possibility. DNLAX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
DNLAX is one of many Sector - Energy funds to choose from. Sector - Energy mutual funds are comprised of various changing and hugely important industries throughout the massive global energy sector. Even though clean energy is beginning to pick up steam, oil and gas companies have the highest exposure, but carbon-based fuels will be the biggest group of assets in these funds.
History of Fund/Manager
Dreyfus Premier is based in New York, NY, and is the manager of DNLAX. Dreyfus Natural Resources A debuted in October of 2003. Since then, DNLAX has accumulated assets of about $47.82 million, according to the most recently available information. Robin Wehbe is the fund's current manager and has held that role since January of 2009.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of -2.58%, 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 -3.58%, 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 DNLAX over the past three years is 17.69% compared to the category average of 12.87%. Over the past 5 years, the standard deviation of the fund is 17.55% compared to the category average of 13.05%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. DNLAX lost 53.93% in the most recent bear market and outperformed its peer group by 2%. This makes the fund a possibly better choice than its peers during a sliding market environment.
Investors should note that the fund has a 5-year beta of 1.05, so it is likely going to be more volatile than 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. The fund has produced a negative alpha over the past 5 years of -10.55, which shows that 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, DNLAX is a load fund. It has an expense ratio of 1.24% compared to the category average of 1.56%. So, DNLAX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $100.
Bottom Line
Overall, Dreyfus Natural Resources A ( DNLAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Your research on the Sector - Energy segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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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Is Dreyfus Natural Resources A (DNLAX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Sector - Energy fund? Starting with Dreyfus Natural Resources A (DNLAX - Free Report) is one possibility. DNLAX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
DNLAX is one of many Sector - Energy funds to choose from. Sector - Energy mutual funds are comprised of various changing and hugely important industries throughout the massive global energy sector. Even though clean energy is beginning to pick up steam, oil and gas companies have the highest exposure, but carbon-based fuels will be the biggest group of assets in these funds.
History of Fund/Manager
Dreyfus Premier is based in New York, NY, and is the manager of DNLAX. Dreyfus Natural Resources A debuted in October of 2003. Since then, DNLAX has accumulated assets of about $47.82 million, according to the most recently available information. Robin Wehbe is the fund's current manager and has held that role since January of 2009.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of -2.58%, 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 -3.58%, 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 DNLAX over the past three years is 17.69% compared to the category average of 12.87%. Over the past 5 years, the standard deviation of the fund is 17.55% compared to the category average of 13.05%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. DNLAX lost 53.93% in the most recent bear market and outperformed its peer group by 2%. This makes the fund a possibly better choice than its peers during a sliding market environment.
Investors should note that the fund has a 5-year beta of 1.05, so it is likely going to be more volatile than 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. The fund has produced a negative alpha over the past 5 years of -10.55, which shows that 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, DNLAX is a load fund. It has an expense ratio of 1.24% compared to the category average of 1.56%. So, DNLAX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $100.
Bottom Line
Overall, Dreyfus Natural Resources A ( DNLAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Your research on the Sector - Energy segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.