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Is ProFunds Internet UltraSector Investor (INPIX) a Strong Mutual Fund Pick Right Now?

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If investors are looking at the Sector - Tech fund category, ProFunds Internet UltraSector Investor (INPIX - Free Report) could be a potential option. INPIX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

INPIX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.

History of Fund/Manager

ProFunds is based in Columbus, OH, and is the manager of INPIX. ProFunds Internet UltraSector Investor debuted in June of 2000. Since then, INPIX has accumulated assets of about $206.23 million, according to the most recently available information. Michael Neches is the fund's current manager and has held that role since October of 2013.

Performance

Of course, investors look for strong performance in funds. INPIX has a 5-year annualized total return of 37.37% 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 27.22%, 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 INPIX over the past three years is 34.79% compared to the category average of 26.64%. Over the past 5 years, the standard deviation of the fund is 28.76% compared to the category average of 22.99%. 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. 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. The fund has produced a positive alpha over the past 5 years of 11.44, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, INPIX is a no load fund. It has an expense ratio of 1.60% compared to the category average of 1.37%. Looking at the fund from a cost perspective, INPIX is actually more expensive than its peers.

Investors should also note that the minimum initial investment for the product is $15,000 and that each subsequent investment has no minimum amount.

Bottom Line

Overall, ProFunds Internet UltraSector Investor ( INPIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, ProFunds Internet UltraSector Investor ( INPIX ) looks like a good potential choice for investors right now.

Want even more information about INPIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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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