Is Dreyfus Technology Growth A (DTGRX) a Strong Mutual Fund Pick Right Now?

If you've been stuck searching for Sector - Tech funds, you might want to consider passing on by Dreyfus Technology Growth A (DTGRX) as a possibility. DTGRX bears 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 DTGRX 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/ManagerBNY Mellon is responsible for DTGRX, and the company is based out of New York, NY. The Dreyfus Technology Growth A made its debut in October of 1997 and DTGRX has managed to accumulate roughly $351.18 million in assets, as of the most recently available information. The fund's current manager, Robert Zeuthen, has been in charge of the fund since March of 2022.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 16.55%, and is in the middle 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 2.06%, 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. DTGRX's standard deviation over the past three years is 28.17% compared to the category average of 18.15%. Looking at the past 5 years, the fund's standard deviation is 26.61% compared to the category average of 18.45%. 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 1.25, which means it is hypothetically more 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. Over the past 5 years, the fund has a negative alpha of -1.16. This means that managers in this portfolio find it difficult to pick 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, DTGRX is a load fund. It has an expense ratio of 1.11% compared to the category average of 1.05%. Looking at the fund from a cost perspective, DTGRX is actually more expensive 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 LineOverall, Dreyfus Technology Growth A ( DTGRX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and higher fees, this fund looks like 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. 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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