Is ProFunds Tech UltraSector Investor (TEPIX) a Good Mutual Fund Choice

Columbus: If you’re on the hunt for a tech fund, ProFunds Tech UltraSector Investor (TEPIX) might be worth a look. It has a Zacks Mutual Fund Rank of 1, which is a strong buy. This ranking is based on various factors like size, cost, and past performance.

TEPIX is part of the Sector – Tech category, which offers a range of options. These funds let you invest in a sector known for its ups and downs. Tech companies cover everything from semiconductors to software and networking.

ProFunds, based in Columbus, Ohio, manages TEPIX. This fund started in June 2000 and has about $87.36 million in assets. Michael Neches has been managing it since October 2013.

Investors want strong performance, and TEPIX delivers. It has a 5-year annualized total return of 26.1%, placing it in the top third of its peers. If you look at a shorter time frame, its 3-year annualized return is 6.3%, which is average for this period.

Keep in mind that returns might not include all expenses, which could lower them. Also, the fund’s standard deviation over the past three years is 35.06%, making it more volatile than the category average of 26.06%.

The fund has a 5-year beta of 1.73, indicating it’s more volatile than the market. Its positive alpha of 2.92 shows that the managers are skilled at picking securities that outperform the benchmark.

When it comes to costs, TEPIX is a no-load fund with an expense ratio of 1.52%, slightly higher than the category average of 1.44%. The initial investment is $15,000, but there’s no minimum for future investments.

In summary, despite its higher fees and risks, TEPIX has a strong Zacks Mutual Fund rank, making it a solid option for investors right now. If you’re interested in more details, check out Zacks.com for additional information on this fund and others.