There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is ProFunds Semicond UltraSector Service Class (SMPSX Quick QuoteSMPSX - Free Report) . SMPSX carries 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

ProFunds is based in Columbus, OH, and is the manager of SMPSX. The ProFunds Semicond UltraSector Service Class made its debut in June of 2000 and SMPSX has managed to accumulate roughly $6.22 million in assets, as of the most recently available information. The fund's current manager, Michael Neches, has been in charge of the fund since October of 2013.

Performance

Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 21.22%, 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 21.87%, 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. SMPSX's standard deviation over the past three years is 40.51% compared to the category average of 26.75%. The standard deviation of the fund over the past 5 years is 38.93% compared to the category average of 24.25%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.84, which means it is hypothetically more volatile than the market at large. 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. With a positive alpha of 5.77, 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 mostly on equities that are traded in the United States.

Right now, 82.16% of this mutual fund's holdings are stocks, and these companies have an average market capitalization of $198.48 billion. The fund has the heaviest exposure to the following market sectors:

1. Technology
2. Other

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, SMPSX is a no load fund. It has an expense ratio of 2.44% compared to the category average of 1.30%. So, SMPSX is actually more expensive than its peers from a cost perspective.

While the minimum initial investment for the product is $15,000, investors should also note that there is no minimum for each subsequent investment.

Bottom Line

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

This could just be the start of your research on SMPSXin the Mutual Fund Equity Report 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.