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Is Franklin DynaTech Advisor (FDYZX) a Strong Mutual Fund Pick Right Now?
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Sector - Tech fund seekers should consider taking a look at Franklin DynaTech Advisor (FDYZX - Free Report) . FDYZX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FDYZX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
Franklin is based in San Mateo, CA, and is the manager of FDYZX. The Franklin DynaTech Advisor made its debut in November of 2010 and FDYZX has managed to accumulate roughly $3.62 billion in assets, as of the most recently available information. The fund's current manager, Rupert H. Johnson Jr.Has been in charge of the fund since November of 2010.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 12.64%, and is in the bottom 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 25.1%, which places it in the middle 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 15.07%, the standard deviation of FDYZX over the past three years is 21.88%. Over the past 5 years, the standard deviation of the fund is 22.97% compared to the category average of 14.72%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.22, the fund 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. With a negative alpha of -5.18, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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 principally on equities that are traded in the United States.
This fund is currently holding about 97.65% in stocks, which have an average market capitalization of $511.47 billion. This fund's turnover is about 41.52%, so the fund managers are making fewer trades than the average comparable fund.
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, FDYZX is a no load fund. It has an expense ratio of 0.52% compared to the category average of 0.94%. From a cost perspective, FDYZX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 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 weak performance, worse downside risk, and lower fees, Franklin DynaTech Advisor ( FDYZX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.
Don't stop here for your research on Sector - Tech funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FDYZX to its peers as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is Franklin DynaTech Advisor (FDYZX) a Strong Mutual Fund Pick Right Now?
Sector - Tech fund seekers should consider taking a look at Franklin DynaTech Advisor (FDYZX - Free Report) . FDYZX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FDYZX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
Franklin is based in San Mateo, CA, and is the manager of FDYZX. The Franklin DynaTech Advisor made its debut in November of 2010 and FDYZX has managed to accumulate roughly $3.62 billion in assets, as of the most recently available information. The fund's current manager, Rupert H. Johnson Jr.Has been in charge of the fund since November of 2010.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 12.64%, and is in the bottom 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 25.1%, which places it in the middle 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 15.07%, the standard deviation of FDYZX over the past three years is 21.88%. Over the past 5 years, the standard deviation of the fund is 22.97% compared to the category average of 14.72%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.22, the fund 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. With a negative alpha of -5.18, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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 principally on equities that are traded in the United States.
This fund is currently holding about 97.65% in stocks, which have an average market capitalization of $511.47 billion. This fund's turnover is about 41.52%, so the fund managers are making fewer trades than the average comparable fund.
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, FDYZX is a no load fund. It has an expense ratio of 0.52% compared to the category average of 0.94%. From a cost perspective, FDYZX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 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 weak performance, worse downside risk, and lower fees, Franklin DynaTech Advisor ( FDYZX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.
Don't stop here for your research on Sector - Tech funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FDYZX to its peers as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.