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Is Invesco Developing Markets R6 (ODVIX) a Strong Mutual Fund Pick Right Now?

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On the lookout for a Mutual Fund Equity Report fund? Starting with Invesco Developing Markets R6 (ODVIX - Free Report) should not be a possibility at this time. ODVIX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

History of Fund/Manager

ODVIX finds itself in the Invesco family, based out of Kansas City, MO. Since Invesco Developing Markets R6 made its debut in December of 2011, ODVIX has garnered more than $8.57 billion in assets. The fund is currently managed by Justin Leverenz who has been in charge of the fund since December of 2011.

Performance

Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 1.23%, and is in the bottom 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 -5.45%, 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. ODVIX's standard deviation over the past three years is 20.32% compared to the category average of 15.24%. The standard deviation of the fund over the past 5 years is 19.89% compared to the category average of 15.99%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 0.79, so investors should note that it is hypothetically less volatile than the market at large. 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. ODVIX's 5-year performance has produced a negative alpha of -6.66, which means 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, ODVIX is a no load fund. It has an expense ratio of 0.87% compared to the category average of 0.99%. Looking at the fund from a cost perspective, ODVIX is actually cheaper than its peers.

Investors should also note that the minimum initial investment for the product is $1 million and that each subsequent investment has no minimum amount.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Invesco Developing Markets R6 ( ODVIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Invesco Developing Markets R6 ( ODVIX ) looks like a somewhat weak choice for investors right now.

Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare ODVIX to its peers 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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