Investors looking to find mutual fund equity reporting funds may want to consider starting with Franklin Dynatech Advisors (FDYZX). FDYZX has a Zacks Mutual Fund Rank of 2 (Buy) based on nine predictive factors such as size, expense and past performance.
Franklin is based in San Mateo, CA, and is the manager of FDYZX. Franklin Dynatech Consulting It first launched in November 2010 and since then, FDYZX has accumulated assets of approximately $2.26 billion as of the most recent date available. The fund’s current manager is Rupert H.
Of course, investors want strong performance in the money. This fund has delivered a 5-year annualized total return of 10.05% and ranks in the middle third among its category peers. But if you’re looking for a shorter time frame, it’s worth looking at its 3-year annualized total return of 5.48%, which puts it in the bottom third of 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 lower the volatility of the fund’s experiences. FDYZX’s standard deviation over the past three years is 26.33% compared to the category average of 17.98%. Over the past 5 years, the fund’s standard deviation is 23.28% versus the category average of 15.81%. This makes the fund more volatile than its peers over the past half-decade.
With a 5-year beta of 1.09, the fund may be more volatile than the market average. Because alpha represents a portfolio’s performance on a risk-adjusted basis relative to its benchmark, which in this case is the S&P 500, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -0.81. This means that managers in this portfolio will have difficulty selecting securities that generate better returns than the benchmark.
Exploring equity mutual funds is also a valuable exercise. This can show us how the manager applies the described method and also if there are any inherent biases in their approach. For this particular fund, the focus is mostly on stocks traded in the United States.
Currently, this mutual fund holds 88.51% of shares, the average market capitalization is 240.23 billion dollars. The fund has significant exposure to the following market sectors:
With a turnover rate of 40.72%, this fund is trading less than the average comparable fund.
As competition heats up in the mutual fund market, costs become more important. A product with a lower price will be superior when compared to another similar product, all other things being equal. Therefore, it is crucial for investors to keep a close eye on price-related metrics. In terms of fees, FDYZX is a no-load fund. It has an expense ratio of 0.57% compared to the category average of 1.30%. In terms of price, FDYZX is certainly cheaper than its peers.
Investors should note that the minimum initial investment for the product is $0 and each subsequent investment has no minimum amount.
Overall, Franklin Dynatech Advisors (FDYZX) has a high Zacks Mutual Fund Rank, and combined with its relatively consistent performance, lower risk exposure, and lower fees, this fund looks like a great potential choice for investors right now.
Be sure to go to www.zacks.com/funds/mutual-funds for more information on this product or to compare it to other mutual funds in the Mutual Fund Equity Report. If you’re more of a stock investor, be sure to check out our Zacks Rank, and our full suite of tools for beginners and professional investors alike.
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