Yahoo Finance Is BlackRock Science & Technology Opportunities C (BGSCX) a Strong Mutual Fund Pick Right Now?
If you're looking for a Mutual Fund Equity Report fund category, then a potential option is BlackRock Science & Technology Opportunities C (BGSCX). BGSCX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
BlackRock is based in New York, NY, and is the manager of BGSCX. BlackRock Science & Technology Opportunities C made its debut in May of 2000, and since then, BGSCX has accumulated about $241.26 million in assets, per the most up-to-date date available. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 11.78%, and is in the middle 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 7.14%, which places it in the middle third during this time-frame.
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. BGSCX's standard deviation over the past three years is 27.14% compared to the category average of 17.28%. The standard deviation of the fund over the past 5 years is 25.56% compared to the category average of 16.82%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.17, the fund is likely to be more volatile than the market average. 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. BGSCX's 5-year performance has produced a negative alpha of -0.05, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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.
Currently, this mutual fund is holding 78.84% stock in stocks, which have an average market capitalization of $310.37 billion. Turnover is 29%, which means, on average, the fund makes fewer trades than comparable funds.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, BGSCX is a no load fund. It has an expense ratio of 1.92% compared to the category average of 1.29%. Looking at the fund from a cost perspective, BGSCX 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 $50.
Bottom Line
Overall, BlackRock Science & Technology Opportunities C ( BGSCX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and higher fees, this fund looks like a somewhat average choice for investors right now.
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into BGSCX too 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.
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