If you're looking for an Index fund category, then a possible option is Rydex NASDAQ-100 2X Strategy A (RYVLX Quick QuoteRYVLX - Free Report) . The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.

History of Fund/Manager

Rydex is based in Topeka, KS, and is the manager of RYVLX. Since Rydex NASDAQ-100 2X Strategy A made its debut in June of 2005, RYVLX has garnered more than $33.91 million in assets. The fund is currently managed by Michael P. Byrum who has been in charge of the fund since June of 2005.

Performance

Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 29.43%, and is in the top 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 26.23%, 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. Over the past three years, RYVLX's standard deviation comes in at 26.81%, compared to the category average of 8.17%. The fund's standard deviation over the past 5 years is 27.27% compared to the category average of 8.66%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. In the most recent bear market, RYVLX lost 80.78% and underperformed its peer group by 34.64%. These results could imply that the fund is a worse choice than its peers during a sliding market environment.

Investors should note that the fund has a 5-year beta of 2.41, 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. RYVLX's 5-year performance has produced a positive alpha of 3.41, which means managers in this portfolio are skilled in picking 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.

Right now, 95.35% of this mutual fund's holdings are stocks, with an average market capitalization of $416.71 billion. The fund has the heaviest exposure to the following market sectors:

1. Technology
2. Other

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, RYVLX is a load fund. It has an expense ratio of 1.79% compared to the category average of 0.74%. So, RYVLX is actually more expensive than its peers from a cost perspective.

This fund requires a minimum initial investment of $2,500, while there is no minimum for each subsequent investment.

Bottom Line

For additional information on this product, or to compare it to other mutual funds in the Index, 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.