If investors are looking at the Mutual Fund Equity Report fund category, be sure not to go through Dreyfus Technology Growth A (DTGRX – free report). DTGRX carries a Zacks Mutual Fund Rank of 5 (strong sell), which is based on nine predictor factors such as size, cost and past performance.
DTGRX is part of the BNY Mellon family of funds, a company based in New York, NY. Dreyfus Technology Growth A debuted in October 1997. Since then, DTGRX has accumulated assets of approximately $219.42 million, according to the most recent information available. Erik A. Swords is the current manager of the fund and has held this position since December 2008.
Investors are naturally looking for high performance funds. This fund has generated a 5-year annualized total return of 6.4% and ranks in the bottom third among its peers in the category. But if you’re looking for a shorter time frame, it’s also worth looking at its 3-year annualized total return of 4.33%, which puts it in the bottom third over that time frame.
When looking at a fund’s performance, it’s also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, the standard deviation of DTGRX is 28.12%, compared to a category average of 19.92%. The fund’s standard deviation over the last 5 years is 25.16% compared to the category average of 17.75%. This makes the fund more volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 1.2, meaning it is hypothetically more volatile than the market as a whole. Since alpha represents the performance of a portfolio on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, it is also worth paying attention to this measure. Over the past 5 years, the fund has had a negative alpha of -2.97. This means that the managers of this portfolio have difficulty choosing stocks that generate returns above the benchmark index.
Investigating the stock 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 whether there are any inherent biases in their approach. For this particular fund, the focus is primarily on stocks that are traded in the United States.
This fund currently owns approximately 95.48% in stocks, which have an average market capitalization of $479.90 billion. With a turnover rate of approximately 48.34%, this fund trades less than its comparable peers.
Costs are increasingly important for investing in mutual funds, especially as competition intensifies in this market. And all things being equal, a lower-cost product will outperform its otherwise identical counterpart, so it’s essential for investors to take a closer look at these metrics. In terms of fees, DTGRX is a load fund. It has an expense ratio of 1.14% compared to the category average of 1.30%. So, DTGRX is actually cheaper than its peers from a cost perspective.
Investors should be aware that with this product the minimum initial investment is $1,000; each subsequent investment must be at least $100.
Overall, Dreyfus Technology Growth A (DTGRX) has a low Zacks Mutual Fund ranking, and in conjunction with its relatively poor performance, worse downside risk, and lower fees, this fund seems like a somewhat desirable choice. bit weak for investors right now.
For more information on the World Mutual Funds Mutual Funds Stock Report area, be sure to visit www.zacks.com/funds/mutual-funds. There you can learn more about the grading process and dive even deeper into DTGRX for more information. If you also want to check out our stock reports, be sure to go to Zacks.com to see all the great tools we have to offer, including our proven Zacks Ranking.