Is Shelton Nasdaq-100 Index Direct (NASDX) a Strong Mutual Fund Pick Right Now?

If you're looking for an Index fund category, then a possible option is Shelton Nasdaq-100 Index Direct (NASDX). While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.History of Fund/ManagerShelton is based in Denver, CO, and is the manager of NASDX. Since Shelton Nasdaq-100 Index Direct made its debut in April of 2000, NASDX has garnered more than $1.62 billion in assets. The fund's current manager, Stephen C. Rogers, has been in charge of the fund since December of 2003.PerformanceOf course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 17.32%, and is in the top 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 15.58%, 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. Compared to the category average of 19.64%, the standard deviation of NASDX over the past three years is 20.06%. Over the past 5 years, the standard deviation of the fund is 20.45% compared to the category average of 20.09%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. NASDX has a 5-year beta of 1.16, which means it is likely to be more 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 positive alpha of 0.1, managers in this portfolio are skilled in picking 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 primarily on equities that are traded in the United States.The mutual fund currently has 83% of its holdings in stocks, and these companies have an average market capitalization of $554.58 billion. The fund has the heaviest exposure to the following market sectors: Technology Retail Trade With turnover at about 11%, this fund is making 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, NASDX is a no load fund. It has an expense ratio of 0.51% compared to the category average of 0.93%. Looking at the fund from a cost perspective, NASDX 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 $100Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineWant even more information about NASDX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.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. 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