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Is Dreyfus/Boston Small Cap Growth I (SSETX) a Strong Mutual Fund Pick Right Now?
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If you have been looking for Small Cap Growth funds, it would not be wise to start your search with Dreyfus/Boston Small Cap Growth I (SSETX - Free Report) . SSETX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
SSETX is part of the Small Cap Growth category, and this segment boasts an array of many other possible options. Small Cap Growth mutual funds usually focus their portfolios on stocks with large growth opportunities and a market cap of under $2 billion. These portfolios tend to feature small companies in up-and-coming industries and markets.
History of Fund/Manager
Dreyfus Premier is responsible for SSETX, and the company is based out of New York, NY. Dreyfus/Boston Small Cap Growth I made its debut in December of 1996, and since then, SSETX has accumulated about $7.01 million in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 10.94%, 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 15.57%, which places it in the middle 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, SSETX's standard deviation comes in at 17.88%, compared to the category average of 13.49%. The standard deviation of the fund over the past 5 years is 17.73% compared to the category average of 13.17%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In SSETX's case, the fund lost 50.88% in the most recent bear market and outperformed its peer group by 2%. This might suggest that the fund is a better choice than its peers during a bear market.
Nevertheless, with a 5-year beta of 1.19, the fund is likely to be more volatile than the market average. 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. SSETX's 5-year performance has produced a negative alpha of -0.92, which means 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 principally on equities that are traded in the United States.
Right now, 87.35% of this mutual fund's holdings are stocks, with an average market capitalization of $4.76 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Other
Health
Turnover is 103.2%, which means, on average, the fund makes more trades per year than the comparable average.
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, SSETX is a no load fund. It has an expense ratio of 1% compared to the category average of 1.26%. SSETX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $100.
Bottom Line
Overall, Dreyfus/Boston Small Cap Growth I ( SSETX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Dreyfus/Boston Small Cap Growth I ( SSETX ) looks like a somewhat weak choice for investors right now.
For additional information on the Small Cap Growth 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 SSETX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is Dreyfus/Boston Small Cap Growth I (SSETX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Small Cap Growth funds, it would not be wise to start your search with Dreyfus/Boston Small Cap Growth I (SSETX - Free Report) . SSETX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
SSETX is part of the Small Cap Growth category, and this segment boasts an array of many other possible options. Small Cap Growth mutual funds usually focus their portfolios on stocks with large growth opportunities and a market cap of under $2 billion. These portfolios tend to feature small companies in up-and-coming industries and markets.
History of Fund/Manager
Dreyfus Premier is responsible for SSETX, and the company is based out of New York, NY. Dreyfus/Boston Small Cap Growth I made its debut in December of 1996, and since then, SSETX has accumulated about $7.01 million in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 10.94%, 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 15.57%, which places it in the middle 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, SSETX's standard deviation comes in at 17.88%, compared to the category average of 13.49%. The standard deviation of the fund over the past 5 years is 17.73% compared to the category average of 13.17%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In SSETX's case, the fund lost 50.88% in the most recent bear market and outperformed its peer group by 2%. This might suggest that the fund is a better choice than its peers during a bear market.
Nevertheless, with a 5-year beta of 1.19, the fund is likely to be more volatile than the market average. 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. SSETX's 5-year performance has produced a negative alpha of -0.92, which means 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 principally on equities that are traded in the United States.
Right now, 87.35% of this mutual fund's holdings are stocks, with an average market capitalization of $4.76 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Other
- Health
Turnover is 103.2%, which means, on average, the fund makes more trades per year than the comparable average.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, SSETX is a no load fund. It has an expense ratio of 1% compared to the category average of 1.26%. SSETX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $100.
Bottom Line
Overall, Dreyfus/Boston Small Cap Growth I ( SSETX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Dreyfus/Boston Small Cap Growth I ( SSETX ) looks like a somewhat weak choice for investors right now.
For additional information on the Small Cap Growth 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 SSETX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.