If you've been stuck searching for Index funds, consider Direxion Monthly NASDAQ-100 Bull 2X Investor (DXQLX Quick QuoteDXQLX - Free Report) as a possibility. DXQLX holds 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

DXQLX finds itself in the Direxion Funds family, based out of Newton, MA. Since Direxion Monthly NASDAQ-100 Bull 2X Investor made its debut in May of 2006, DXQLX has garnered more than $396.44 million in assets. The fund's current manager, Tony Ng, has been in charge of the fund since May of 2006.

Performance

Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 49.29%, 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 43.06%, 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 DXQLX over the past three years is 40.76% compared to the category average of 37.77%. The fund's standard deviation over the past 5 years is 34.22% compared to the category average of 32.73%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. DXQLX has a 5-year beta of 2.07, which means it is likely to be more volatile than the market average. 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. DXQLX's 5-year performance has produced a positive alpha of 13.61, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Holdings

Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.

As of the last filing date, the mutual fund has 75.78% of its assets in stocks and it has a negligible amount of assets in foreign securities. Turnover is about 124%, so those in charge of the fund make more trades per year than the comparable average.

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, DXQLX is a no load fund. It has an expense ratio of 1.35% compared to the category average of 0.80%. DXQLX is actually more expensive than its peers when you consider factors like cost.

Investors need to be aware that with this product, the minimum initial investment is $25,000; each subsequent investment needs to be at least $500.

Bottom Line

Overall, Direxion Monthly NASDAQ-100 Bull 2X Investor ( DXQLX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, this fund looks like a good potential choice for investors right now.

Your research on the Index 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.