On the lookout for a Sector - Tech fund? Starting with Deutsche Science and Technology A (KTCAX Quick QuoteKTCAX - Free Report) is one possibility. KTCAX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

The world of Sector - Tech funds is an area filled with options, and KTCAX 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/Manager

DWS is based in New York, NY, and is the manager of KTCAX. Deutsche Science and Technology A debuted in September of 1948. Since then, KTCAX has accumulated assets of about $1.31 billion, according to the most recently available information. The fund's current manager, Sebastian Werner, has been in charge of the fund since December of 2017.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. KTCAX has a 5-year annualized total return of 21.38% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 11.91%, which places it in the top 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. Compared to the category average of 17.1%, the standard deviation of KTCAX over the past three years is 23.12%. Looking at the past 5 years, the fund's standard deviation is 22.15% compared to the category average of 17.62%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.11, the fund is likely to be more volatile than the market average. 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 positive alpha of 3.97. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, KTCAX is a load fund. It has an expense ratio of 0.87% compared to the category average of 1.03%. From a cost perspective, KTCAX is actually cheaper than its peers.

While the minimum initial investment for the product is $1,000, investors should also note that 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 Line

Overall, Deutsche Science and Technology A ( KTCAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

For additional information on this product, or to compare it to other mutual funds in the Sector - Tech, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.