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Is BNY Mellon Tech Growth A (DTGRX) a Strong Mutual Fund Pick Right Now?

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If investors are looking at the Sector - Tech fund category, make sure to pass over BNY Mellon Tech Growth A (DTGRX - Free Report) . DTGRX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

Objective

We note that DTGRX 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

DTGRX finds itself in the BNY Mellon family, based out of New York, NY. BNY Mellon Tech Growth A debuted in October of 1997. Since then, DTGRX has accumulated assets of about $527.86 million, according to the most recently available information. The fund is currently managed by Brian Byrnes who has been in charge of the fund since May of 2024.

Performance

Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 13.47%, and it sits in the middle 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 36.36%, 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. DTGRX's standard deviation over the past three years is 24.01% compared to the category average of 15.43%. Looking at the past 5 years, the fund's standard deviation is 27.05% compared to the category average of 17.16%. 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 1.48, so it is likely going to be 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. DTGRX's 5-year performance has produced a negative alpha of -2.5, which means managers in this portfolio find it difficult to pick 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, DTGRX is a load fund. It has an expense ratio of 1.14% compared to the category average of 1.03%. Looking at the fund from a cost perspective, DTGRX is actually more expensive than its peers.

Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $100.

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

Bottom Line

Overall, BNY Mellon Tech Growth A ( DTGRX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.

This could just be the start of your research on DTGRX in the Sector - Tech category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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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