Is DWS Science and Technology A (KTCAX) a Strong Mutual Fund Pick Right Now?

If you have been looking for Sector - Tech funds, a place to start could be DWS Science and Technology A (KTCAX). KTCAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveKTCAX 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/ManagerDWS is based in New York, NY, and is the manager of KTCAX. DWS Science and Technology A debuted in September of 1948. Since then, KTCAX has accumulated assets of about $1.56 billion, according to the most recently available information. The fund is currently managed by Sebastian Werner who has been in charge of the fund since December of 2017.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 18.27%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 38.36%, which places it in the top 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. KTCAX's standard deviation over the past three years is 18.41% compared to the category average of 14.23%. The standard deviation of the fund over the past 5 years is 20.95% compared to the category average of 15.92%. 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 1.18, 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. The fund has produced a positive alpha over the past 5 years of 0.12, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.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, KTCAX is a load fund. It has an expense ratio of 0.88% compared to the category average of 1.03%. Looking at the fund from a cost perspective, KTCAX is actually cheaper 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, DWS Science and Technology A ( KTCAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, DWS Science and Technology A ( KTCAX ) looks like a good potential choice for investors right now.This could just be the start of your research on KTCAX in the Sector - Tech 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.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 (KTCAX): 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