On the lookout for an Index fund? Starting with Direxion Monthly NASDAQ-100 Bull 1.75X Investor (DXQLX Quick QuoteDXQLX - Free Report) is one possibility. DXQLX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

History of Fund/Manager

Direxion Funds is based in Newton, MA, and is the manager of DXQLX. Since Direxion Monthly NASDAQ-100 Bull 1.75X Investor made its debut in May of 2006, DXQLX has garnered more than $466.28 million in assets. Tony Ng is the fund's current manager and has held that role since May of 2006.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 30.86%, 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 14.96%, which places it in the top 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. Over the past three years, DXQLX's standard deviation comes in at 38.89%, compared to the category average of 37.42%. The fund's standard deviation over the past 5 years is 40.65% compared to the category average of 39.7%. 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 2.11, 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. Over the past 5 years, the fund has a positive alpha of 1.86. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

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 1.33% compared to the category average of 1.88%. DXQLX is actually cheaper than its peers when you consider factors like cost.

While the minimum initial investment for the product is $25,000, investors should also note that each subsequent investment needs to be at least $500.

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

Bottom Line

Overall, Direxion Monthly NASDAQ-100 Bull 1.75X Investor ( DXQLX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Direxion Monthly NASDAQ-100 Bull 1.75X Investor ( DXQLX ) looks like a good potential choice for investors right now.

For additional information on the Index area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into DXQLX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.