Looking for a Sector - Tech fund? You may want to consider Columbia Seligman Communications and Information A (SLMCX Quick QuoteSLMCX - Free Report) as a possible option. SLMCX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.

Objective

We note that SLMCX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.

History of Fund/Manager

SLMCX finds itself in the Columbia family, based out of Kansas City, MO. The Columbia Seligman Communications and Information A made its debut in June of 1983 and SLMCX has managed to accumulate roughly $5.81 billion in assets, as of the most recently available information. The fund's current manager is a team of investment professionals.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 23.31%, 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 22.6%, which places it in the middle 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 SLMCX over the past three years is 24.59% compared to the category average of 16.15%. Over the past 5 years, the standard deviation of the fund is 20.99% compared to the category average of 13.77%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.21, the fund is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. SLMCX's 5-year performance has produced a positive alpha of 6.46, which means managers in this portfolio are skilled in picking 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, SLMCX is a load fund. It has an expense ratio of 1.23% compared to the category average of 1.38%. Looking at the fund from a cost perspective, SLMCX is actually cheaper than its peers.

Investors should also note that the minimum initial investment for the product is $2,000 and that each subsequent investment has no minimum amount.

Bottom Line

Overall, Columbia Seligman Communications and Information A ( SLMCX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.

This could just be the start of your research on SLMCXin 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. 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.