Is ProFunds Internet UltraSector Service Class (INPSX) a Strong Mutual Fund Pick Right Now?

Investors in search of a Sector - Tech fund might want to consider looking at ProFunds Internet UltraSector Service Class (INPSX). INPSX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.ObjectiveThe world of Sector - Tech funds is an area filled with options, and INPSX is one of them. Sector - Tech mutual funds allow investors to own a stake in a notoriously volatile sector with a much more diversified approach. Tech companies can be in any number of industries such as semiconductors, software, internet, networking just to name a few.History of Fund/ManagerProFunds is responsible for INPSX, and the company is based out of Columbus, OH. ProFunds Internet UltraSector Service Class debuted in June of 2000. Since then, INPSX has accumulated assets of about $2.73 million, according to the most recently available information. Michael Neches is the fund's current manager and has held that role since October of 2013.PerformanceOf course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of -2.53%, and is in the bottom 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 27.59%, which places it in the middle third during this time-frame.It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.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, INPSX's standard deviation comes in at 29.61%, compared to the category average of 20.41%. The fund's standard deviation over the past 5 years is 34.62% compared to the category average of 23.45%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 1.81, which means it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -16.47. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesFor 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, INPSX is a no load fund. It has an expense ratio of 2.32% compared to the category average of 1.41%. INPSX is actually more expensive than its peers when you consider factors like cost.This fund requires a minimum initial investment of $15,000, while there is no minimum for each subsequent investment.Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.Bottom LineFor additional information on the Sector - Tech 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 INPSX too for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks