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Is Invesco Diversified Dividend A (LCEAX) a Strong Mutual Fund Pick Right Now?
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If you're looking for a Mutual Fund Equity Report fund category, then a potential option is Invesco Diversified Dividend A (LCEAX - Free Report) . LCEAX 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
LCEAX is a part of the Invesco family of funds, a company based out of Kansas City, MO. Since Invesco Diversified Dividend A made its debut in December of 2001, LCEAX has garnered more than $3.48 billion in assets. The fund is currently managed by a team of investment professionals.
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 5.97%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 8.86%, which places it in the bottom 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. LCEAX's standard deviation over the past three years is 15.82% compared to the category average of 14.83%. Over the past 5 years, the standard deviation of the fund is 16.51% compared to the category average of 15.9%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.8, the fund is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a negative alpha of -2.88, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, LCEAX is a load fund. It has an expense ratio of 0.82% compared to the category average of 0.91%. LCEAX is actually cheaper than its peers when you consider factors like cost.
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
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Invesco Diversified Dividend A ( LCEAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Invesco Diversified Dividend A ( LCEAX ) looks like a somewhat average choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds 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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Is Invesco Diversified Dividend A (LCEAX) a Strong Mutual Fund Pick Right Now?
If you're looking for a Mutual Fund Equity Report fund category, then a potential option is Invesco Diversified Dividend A (LCEAX - Free Report) . LCEAX 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
LCEAX is a part of the Invesco family of funds, a company based out of Kansas City, MO. Since Invesco Diversified Dividend A made its debut in December of 2001, LCEAX has garnered more than $3.48 billion in assets. The fund is currently managed by a team of investment professionals.
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 5.97%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 8.86%, which places it in the bottom 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. LCEAX's standard deviation over the past three years is 15.82% compared to the category average of 14.83%. Over the past 5 years, the standard deviation of the fund is 16.51% compared to the category average of 15.9%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.8, the fund is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a negative alpha of -2.88, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, LCEAX is a load fund. It has an expense ratio of 0.82% compared to the category average of 0.91%. LCEAX is actually cheaper than its peers when you consider factors like cost.
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
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Invesco Diversified Dividend A ( LCEAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Invesco Diversified Dividend A ( LCEAX ) looks like a somewhat average choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds 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.