If you've been stuck searching for Small Cap Growth funds, consider Oppenheimer Discovery Y (ODIYX Quick QuoteODIYX - Free Report) as a possibility. ODIYX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

ODIYX is part of the Small Cap Growth category, and this segment boasts an array of many other possible options. Small Cap Growth mutual funds usually focus their portfolios on stocks with large growth opportunities and a market cap of under $2 billion. These portfolios tend to feature small companies in up-and-coming industries and markets.

History of Fund/Manager

Invesco is based in Kansas City, MO, and is the manager of ODIYX. Since Oppenheimer Discovery Y made its debut in June of 1994, ODIYX has garnered more than $1.71 billion in assets. The fund is currently managed by Ronald J. Zibelli Jr. who has been in charge of the fund since May of 2006.

Performance

Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 23.99%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 24.91%, 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. Over the past three years, ODIYX's standard deviation comes in at 23.38%, compared to the category average of 17.11%. The fund's standard deviation over the past 5 years is 18.99% compared to the category average of 14.11%. 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. ODIYX has a 5-year beta of 1.05, which means it is likely to be more volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. ODIYX has generated a positive alpha over the past five years of 5.16, demonstrating that 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, ODIYX is a no load fund. It has an expense ratio of 0.78% compared to the category average of 1.21%. So, ODIYX 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 $50.

Bottom Line

Overall, Oppenheimer Discovery Y ( ODIYX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Oppenheimer Discovery Y ( ODIYX ) looks like a good potential choice for investors right now.

This could just be the start of your research on ODIYXin the Small Cap Growth 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. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.