Any investors hoping to find a Sector - Health fund could think about starting with ProFunds Biotech Ultra Sector Investor (BIPIX Quick QuoteBIPIX - Free Report) . BIPIX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

Zacks categorizes BIPIX as Sector - Health, a segment packed with options. Sector - Health mutual funds offer investors a focus on the healthcare industry, one of the largest sectors in the American economy. These funds can include everything from pharmaceutical companies to medical device manufacturers and for-profit hospitals.

History of Fund/Manager

BIPIX finds itself in the ProFunds family, based out of Columbus, OH. ProFunds Biotech Ultra Sector Investor made its debut in June of 2000, and since then, BIPIX has accumulated about $82.66 million in assets, per the most up-to-date date available. The fund is currently managed by Michael Neches who has been in charge of the fund since October of 2013.

Performance

Of course, investors look for strong performance in funds. BIPIX has a 5-year annualized total return of 9.02% and it sits in the middle 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 2.91%, which places it in the bottom third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

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. Compared to the category average of 26.18%, the standard deviation of BIPIX over the past three years is 35.43%. Over the past 5 years, the standard deviation of the fund is 32.44% compared to the category average of 27.54%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 1.2, so investors should note that it is hypothetically more volatile than the market at large. 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. With a negative alpha of -4.71, managers in this portfolio find it difficult to pick 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, BIPIX is a no load fund. It has an expense ratio of 1.52% compared to the category average of 1.41%. So, BIPIX is actually more expensive than its peers from a cost perspective.

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

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, even with its comparatively similar performance, average downside risk, and higher fees, ProFunds Biotech Ultra Sector Investor ( BIPIX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.

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