If you've been stuck searching for Sector - Tech funds, consider Franklin DynaTech Advisor (FDYZX Quick QuoteFDYZX - Free Report) as a possibility. FDYZX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

We note that FDYZX 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 diversified approach.

History of Fund/Manager

Franklin is responsible for FDYZX, and the company is based out of San Mateo, CA. Since Franklin DynaTech Advisor made its debut in November of 2010, FDYZX has garnered more than $4.16 billion in assets. The fund is currently managed by Rupert H. Johnson Jr. who has been in charge of the fund since November of 2010.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 10.86%, and it sits in the bottom 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 26.46%, 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. The standard deviation of FDYZX over the past three years is 19.76% compared to the category average of 11.9%. Looking at the past 5 years, the fund's standard deviation is 23.08% compared to the category average of 14.04%. 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 1.32, so it is likely going to be more volatile than the market at large. 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. With a negative alpha of -4.71, managers in this portfolio find it difficult to pick 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.

Currently, this mutual fund is holding 91.42% in stocks, which have an average market capitalization of $643.20 billion. The fund has the heaviest exposure to the following market sectors:

• Technology
• Retail Trade

This fund's turnover is about 29.61%, so the fund managers are making fewer trades than its comparable peers.

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, FDYZX is a no load fund. It has an expense ratio of 0.52% compared to the category average of 0.93%. So, FDYZX is actually cheaper than its peers from a cost perspective.

While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.

Fees charged by investment advisors have not been taken into consideration. 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.

For additional information on this product, or to compare it to other mutual funds in the Sector - Tech, make sure to go to www.zacks.com/funds/mutual-funds 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.