Is BlackRock Science & Technology Opportunities A (BGSAX) a Strong Mutual Fund Pick Right Now?

There are plenty of choices in the Sector - Tech category, but where should you start your research? Well, one fund that may not be worth investigating is BlackRock Science & Technology Opportunities A (BGSAX). BGSAX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.ObjectiveBGSAX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.History of Fund/ManagerBlackRock is based in New York, NY, and is the manager of BGSAX. The BlackRock Science & Technology Opportunities A made its debut in May of 2000 and BGSAX has managed to accumulate roughly $2.30 billion in assets, as of the most recently available information. Tony Kim is the fund's current manager and has held that role since June of 2013.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 13.71%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 26.73%, 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, BGSAX's standard deviation comes in at 23.35%, compared to the category average of 15.57%. The fund's standard deviation over the past 5 years is 24.23% compared to the category average of 15.19%. 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 1.28, so it is likely going to be more volatile than the market at large. 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. BGSAX's 5-year performance has produced a negative alpha of -4.7, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.HoldingsExploring 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 largely on equities that are traded in the United States.Currently, this mutual fund is holding 91.95% in stocks, which have an average market capitalization of $602.57 billion. The fund has the heaviest exposure to the following market sectors:TechnologyTurnover is about 21%, so those in charge of the fund make fewer trades than the average comparable fund.ExpensesCosts 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, BGSAX is a load fund. It has an expense ratio of 1.17% compared to the category average of 1.00%. Looking at the fund from a cost perspective, BGSAX is actually more expensive than its peers.Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50.Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.Bottom LineOverall, BlackRock Science & Technology Opportunities A ( BGSAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.For additional information on this product, or to compare it to other mutual funds in the Sector - Tech, make sure to go to www.zacks.com/funds/mutual-funds for additional information. 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Click to get this free report Get Your Free (BGSAX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks