Is Dreyfus/Boston Small Cap Growth I (SSETX) a Strong Mutual Fund Pick Right Now?

If you have been looking for Small Cap Growth funds, it would not be wise to start your search with Dreyfus/Boston Small Cap Growth I (SSETX). SSETX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.ObjectiveSSETX is one of many different Small Cap Growth funds to choose from. Small Cap Growth mutual funds build portfolios around stocks with markets caps under $2 billion and large growth opportunities. Additionally, these portfolios typically highlight smaller companies in promising markets and industries.History of Fund/ManagerSSETX is a part of the BNY Mellon family of funds, a company based out of New York, NY. Dreyfus/Boston Small Cap Growth I made its debut in December of 1996, and since then, SSETX has accumulated about $8.63 million in assets, per the most up-to-date date available. John Porter is the fund's current manager and has held that role since March of 2017.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. SSETX has a 5-year annualized total return of 9.64% and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -6.59%, 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. SSETX's standard deviation over the past three years is 21.67% compared to the category average of 18.26%. Over the past 5 years, the standard deviation of the fund is 24.14% compared to the category average of 19.44%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsThe fund has a 5-year beta of 1.09, so investors should note that it is hypothetically more volatile than the market at large. 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. The fund has produced a negative alpha over the past 5 years of -4.96, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.HoldingsExamining 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 mostly on equities that are traded in the United States.The mutual fund currently has 80.68% of its holdings in stocks, which have an average market capitalization of $6.50 billion. The fund has the heaviest exposure to the following market sectors: Technology Health Industrial Cyclical Other Turnover is about 36.92%, so those in charge of the fund make fewer trades than the average comparable fund.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, SSETX is a no load fund. It has an expense ratio of 1% compared to the category average of 1.07%. From a cost perspective, SSETX is actually cheaper than its peers.Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $100.Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, Dreyfus/Boston Small Cap Growth I ( SSETX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Dreyfus/Boston Small Cap Growth I ( SSETX ) looks like a somewhat weak choice for investors right now.Your research on the Small Cap Growth 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. 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