Is Invesco Diversified Dividend A (LCEAX) a Strong Mutual Fund Pick Right Now?

Have you been searching for a Large Cap Blend fund? You might want to begin with Invesco Diversified Dividend A (LCEAX). LCEAX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.ObjectiveLCEAX is classified in the Large Cap Blend segment by Zacks, which is an area full of potential. Targeting companies with market caps of more than $10 billion, Large Cap Blend mutual funds offer a stable investment choice; these funds are perfect for investors with a " buy and hold " mindset. Since blended funds mix large, more established firms into their portfolios, investors are exposed to both value and growth opportunities.History of Fund/ManagerLCEAX finds itself in the Invesco family, based out of Kansas City, MO. The Invesco Diversified Dividend A made its debut in December of 2001 and LCEAX has managed to accumulate roughly $3.97 billion in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.PerformanceOf course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 8.67%, and it sits in the bottom 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 7.47%, which places it in the middle 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, LCEAX's standard deviation comes in at 14.7%, compared to the category average of 14.61%. The fund's standard deviation over the past 5 years is 16.22% compared to the category average of 15.63%. 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 0.8, which means it is hypothetically less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. The fund has produced a negative alpha over the past 5 years of -3.47, which shows that managers in this portfolio find it difficult to pick 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 principally on equities that are traded in the United States.Right now, 81.73% of this mutual fund's holdings are stocks, with an average market capitalization of $238.13 billion. The fund has the heaviest exposure to the following market sectors: Finance Industrial Cyclical Health Non-Durable Technology With turnover at about 54%, this fund is making more trades in a given year than the average of comparable funds.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, LCEAX is a load fund. It has an expense ratio of 0.85% compared to the category average of 0.94%. So, LCEAX is actually cheaper than its peers from a cost perspective.Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $50.Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, even with its comparatively weak performance, average downside risk, and lower fees, Invesco Diversified Dividend A ( LCEAX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.This could just be the start of your research on LCEAXin the Large Cap Blend category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 (LCEAX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks