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Is ProFunds Internet UltraSector Investor (INPIX) a Strong Mutual Fund Pick Right Now?

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Looking for a Mutual Fund Equity Report fund? You may want to consider ProFunds Internet UltraSector Investor (INPIX - Free Report) as a possible option. INPIX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

ProFunds is based in Columbus, OH, and is the manager of INPIX. ProFunds Internet UltraSector Investor debuted in June of 2000. Since then, INPIX has accumulated assets of about $144.38 million, according to the most recently available information. The fund's current manager, Michael Neches, has been in charge of the fund since October of 2013.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 6.41%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -6.53%, which places it in the bottom 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 INPIX over the past three years is 39.52% compared to the category average of 26.75%. Looking at the past 5 years, the fund's standard deviation is 35.74% compared to the category average of 24.25%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. INPIX has a 5-year beta of 1.73, which means it 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 negative alpha of -9.71. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Exploring 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 primarily on equities that are traded in the United States.

Right now, 88.32% of this mutual fund's holdings are stocks, and these companies have an average market capitalization of $258.51 billion. The fund has the heaviest exposure to the following market sectors:

  1. Technology
  2. Other
  3. Retail Trade
This fund's turnover is about 28%, so the fund managers are making fewer trades than its comparable peers.

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, INPIX is a no load fund. It has an expense ratio of 1.43% compared to the category average of 1.30%. INPIX is actually more expensive than its peers when you consider factors like cost.

Investors should also note that the minimum initial investment for the product is $15,000 and that each subsequent investment has no minimum amount.

Bottom Line

Overall, ProFunds Internet UltraSector Investor ( INPIX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, ProFunds Internet UltraSector Investor ( INPIX ) looks like a somewhat average choice for investors right now.

This could just be the start of your research on INPIXin the Mutual Fund Equity Report 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. 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.


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