If you’ve been stuck searching for Mutual Fund Equity Report funds, consider Franklin DynaTech Adviser (FDYZX) as a possibility. FDYZX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
FDYZX finds itself in the Franklin Templeton family, based out of San Mateo, CA. Franklin DynaTech Adviser debuted in November of 2010. Since then, FDYZX has accumulated assets of about $2.79 billion, according to the most recently available information. Rupert H. Johnson Jr. Is the fund’s current manager and has held that role since November of 2010.
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 14.17%, and it sits 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 11.1%, which places it in the bottom 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. Compared to the category average of 16.36%, the standard deviation of FDYZX over the past three years is 23.84%. Looking at the past 5 years, the fund’s standard deviation is 21.42% compared to the category average of 14.39%. This makes the fund more volatile than its peers over the past half-decade.
The fund has a 5-year beta of 1.1, so investors should note that it is hypothetically more volatile than the market at large. Because alpha represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a positive alpha of 0.37, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Investigating 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.
This fund is currently holding about 77.41% stock in stocks, with an average market capitalization of $397.71 billion. The fund has the heaviest exposure to the following market sectors:
This fund’s turnover is about 50.1%, so the fund managers are making fewer trades than comparable funds.
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, FDYZX is a no load fund. It has an expense ratio of 0.52% compared to the category average of 1.29%. So, FDYZX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Overall, Franklin DynaTech Adviser ( FDYZX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
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