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Is Franklin DynaTech Adviser (FDYZX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Sector - Tech fund category, Franklin DynaTech Adviser (FDYZX - Free Report) could be a potential option. FDYZX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Sector - Tech funds is an area filled with options, and FDYZX is one of them. Sector - Tech mutual funds allow investors to own a stake in a notoriously volatile sector with a much more diversified approach. Tech companies can be in any number of industries such as semiconductors, software, internet, networking just to name a few.
History of Fund/Manager
Franklin Templeton is based in San Mateo, CA, and is the manager of FDYZX. Franklin DynaTech Adviser made its debut in November of 2010, and since then, FDYZX has accumulated about $376.41 million in assets, per the most up-to-date date available. The fund is currently managed by Rupert H. Johnson 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 19.48%, and it sits 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 19.38%, 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. FDYZX's standard deviation over the past three years is 14.07% compared to the category average of 10.06%. Looking at the past 5 years, the fund's standard deviation is 13.31% compared to the category average of 9.67%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment.
Even still, the fund has a 5-year beta of 1.09, so investors should note that 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. FDYZX's 5-year performance has produced a positive alpha of 2.2, which means managers in this portfolio are skilled in picking 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 mostly on equities that are traded in the United States.
Right now, 92.52% of this mutual fund's holdings are stocks, with an average market capitalization of $170.39 billion. With turnover at about 19.85%, this fund is making fewer trades than the average comparable fund.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FDYZX is a no load fund. It has an expense ratio of 0.66% compared to the category average of 1.07%. FDYZX is actually cheaper than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
Overall, Franklin DynaTech Adviser has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on the Sector - Tech 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 FDYZX 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.
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Is Franklin DynaTech Adviser (FDYZX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Sector - Tech fund category, Franklin DynaTech Adviser (FDYZX - Free Report) could be a potential option. FDYZX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Sector - Tech funds is an area filled with options, and FDYZX is one of them. Sector - Tech mutual funds allow investors to own a stake in a notoriously volatile sector with a much more diversified approach. Tech companies can be in any number of industries such as semiconductors, software, internet, networking just to name a few.
History of Fund/Manager
Franklin Templeton is based in San Mateo, CA, and is the manager of FDYZX. Franklin DynaTech Adviser made its debut in November of 2010, and since then, FDYZX has accumulated about $376.41 million in assets, per the most up-to-date date available. The fund is currently managed by Rupert H. Johnson 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 19.48%, and it sits 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 19.38%, 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. FDYZX's standard deviation over the past three years is 14.07% compared to the category average of 10.06%. Looking at the past 5 years, the fund's standard deviation is 13.31% compared to the category average of 9.67%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment.
Even still, the fund has a 5-year beta of 1.09, so investors should note that 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. FDYZX's 5-year performance has produced a positive alpha of 2.2, which means managers in this portfolio are skilled in picking 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 mostly on equities that are traded in the United States.
Right now, 92.52% of this mutual fund's holdings are stocks, with an average market capitalization of $170.39 billion. With turnover at about 19.85%, this fund is making fewer trades than the average comparable fund.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FDYZX is a no load fund. It has an expense ratio of 0.66% compared to the category average of 1.07%. FDYZX is actually cheaper than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
Overall, Franklin DynaTech Adviser has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on the Sector - Tech 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 FDYZX 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.