Sector - Energy fund seekers may want to consider taking a look at Dreyfus Natural Resources A (DNLAX Quick QuoteDNLAX - Free Report) . DNLAX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.

Objective

We classify DNLAX in the Sector - Energy category, an area that is rife with possible choices. Throughout the massive global energy sector, Sector - Energy mutual funds hold a wide range of quickly changing and vitally important industries. While oil and gas comprise the bulk of the exposure, carbon-based fuels will be the biggest group of assets in these funds, though clean energy is starting to pick up steam.

History of Fund/Manager

BNY Mellon is responsible for DNLAX, and the company is based out of New York, NY. The Dreyfus Natural Resources A made its debut in October of 2003 and DNLAX has managed to accumulate roughly $78.54 million in assets, as of the most recently available information. Albert Chu is the fund's current manager and has held that role since October of 2019.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 8.46%, and it sits 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 5.64%, which places it in the top 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. The standard deviation of DNLAX over the past three years is 27.44% compared to the category average of 18.33%. Over the past 5 years, the standard deviation of the fund is 22.49% compared to the category average of 15.06%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.23, 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. DNLAX has generated a negative alpha over the past five years of -10.42, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

As 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, DNLAX is a load fund. It has an expense ratio of 1.24% compared to the category average of 1.53%. From a cost perspective, DNLAX is actually cheaper than its peers.

This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $100.

Bottom Line

Overall, Dreyfus Natural Resources A ( DNLAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Dreyfus Natural Resources A ( DNLAX ) looks like a somewhat average choice for investors right now.

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