If you have been looking for Sector - Tech funds, a place to start could be Franklin DynaTech A (FKDNX Quick QuoteFKDNX - Free Report) . FKDNX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

We note that FKDNX 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

Franklin Templeton is based in San Mateo, CA, and is the manager of FKDNX. Franklin DynaTech A made its debut in January of 1968, and since then, FKDNX has accumulated about $12.35 billion in assets, per the most up-to-date date available. Rupert H. Johnson Jr. Is the fund's current manager and has held that role since January of 1968.

Performance

Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 27.95%, 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 29.41%, 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, FKDNX's standard deviation comes in at 21.36%, compared to the category average of 16.02%. Over the past 5 years, the standard deviation of the fund is 17.79% compared to the category average of 13.24%. 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. FKDNX has a 5-year beta of 0.99, which means it is likely to be as volatile as 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. The fund has produced a positive alpha over the past 5 years of 9.8, which shows 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, FKDNX is a load fund. It has an expense ratio of 0.78% compared to the category average of 1.35%. FKDNX is actually cheaper than its peers when you consider factors like cost.

Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment has no minimum amount.

Bottom Line

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

Your research on the Sector - Tech 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. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.