Is Invesco Gold & Special Minerals A (OPGSX) a Strong Mutual Fund Pick Right Now?
Sector - Precious Metal fund seekers may want to consider taking a look at Invesco Gold & Special Minerals A (OPGSX). OPGSX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.ObjectiveThe world of Sector - Precious Metal funds is an area filled with options, such as OPGSX. Usually, Sector - Precious Metal mutual funds invest in stocks with a focus on the mining and production of precious metals like gold, silver, platinum, and palladium. Here, stocks often trade as leveraged bets of the underlying commodity, meaning they're tied to the metal's prices and can be volatile.History of Fund/ManagerOPGSX finds itself in the Invesco family, based out of Kansas City, MO. Since Invesco Gold & Special Minerals A made its debut in July of 1983, OPGSX has garnered more than $1.38 billion in assets. The fund is currently managed by a team of investment professionals.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 9.45%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 34.57%, 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. Over the past three years, OPGSX's standard deviation comes in at 29.92%, compared to the category average of 16.62%. Looking at the past 5 years, the fund's standard deviation is 30.86% compared to the category average of 16.17%. 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 0.75, which means it is hypothetically less volatile than the market at large. 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. OPGSX's 5-year performance has produced a positive alpha of 1.66, which means managers in this portfolio are skilled in picking 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, OPGSX is a load fund. It has an expense ratio of 1.05% compared to the category average of 1.04%. So, OPGSX is actually more expensive than its peers from a cost perspective.This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.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 higher fees, Invesco Gold & Special Minerals A ( OPGSX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.For additional information on the Sector - Precious Metal area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into OPGSX too 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.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. 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