Is Putnam Global Technology Y (PGTYX) a Strong Mutual Fund Pick Right Now?

On the lookout for a Sector - Tech fund? Starting with Putnam Global Technology Y (PGTYX) should not be a possibility at this time. PGTYX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.ObjectiveThe world of Sector - Tech funds is an area filled with options, and PGTYX 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/ManagerPGTYX is a part of the Putnam Funds family of funds, a company based out of Canton, MA. Since Putnam Global Technology Y made its debut in January of 2009, PGTYX has garnered more than $588.17 million in assets. Di Yao is the fund's current manager and has held that role since December of 2012.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. PGTYX has a 5-year annualized total return of 17.16%, and it sits 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 36.68%, 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. PGTYX's standard deviation over the past three years is 20.6% compared to the category average of 12.85%. The fund's standard deviation over the past 5 years is 22.42% compared to the category average of 13.29%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 1.23, the fund is likely to be more volatile than the market average. 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. Over the past 5 years, the fund has a negative alpha of -1.23. 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, PGTYX is a no load fund. It has an expense ratio of 0.39% compared to the category average of 0.93%. From a cost perspective, PGTYX is actually cheaper than its peers.While the minimum initial investment for the product is $0, investors should also note that 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 LineOverall, even with its comparatively strong performance, worse downside risk, and lower fees, Putnam Global Technology Y ( PGTYX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.Your research on the Sector - Tech segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.#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 (PGTYX): 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