Is Diamond Hill Large Cap Fund A (DHLAX) a Strong Mutual Fund Pick Right Now?

If you have been looking for Large Cap Blend fund category, a potential starting could be Diamond Hill Large Cap Fund A (DHLAX). DHLAX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.ObjectiveDHLAX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a " buy and hold " mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.History of Fund/ManagerDHLAX finds itself in the Diamond Hill family, based out of Columbus, OH. The Diamond Hill Large Cap Fund A made its debut in July of 2001 and DHLAX has managed to accumulate roughly $294 million in assets, as of the most recently available information. Austin Hawley is the fund's current manager and has held that role since February of 2015.PerformanceOf course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 15.6%, and it sits 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 4.68%, which places it in the bottom 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. The standard deviation of DHLAX over the past three years is 17.85% compared to the category average of 14.88%. Over the past 5 years, the standard deviation of the fund is 17.53% compared to the category average of 16.12%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 0.95, the fund is likely to be less volatile than the market average. 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. With a negative alpha of -1.64, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesAs competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, DHLAX is a no load fund. It has an expense ratio of 0.96% compared to the category average of 0.94%. So, DHLAX is actually more expensive than its peers from a cost perspective.This fund requires a minimum initial investment of $2,500, while there is no minimum for each subsequent investment.Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, even with its comparatively weak performance, average downside risk, and higher fees, Diamond Hill Large Cap Fund A ( DHLAX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.This could just be the start of your research on DHLAXin the Large Cap Blend category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (DHLAX): 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