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If you've been stuck searching for Muni - Bonds funds, you might want to consider passing on by Dreyfus High Yield Municipals Bond A (DHYAX - Free Report) as a possibility. DHYAX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
DHYAX is one of many Muni - Bonds funds to choose from. Muni - Bonds funds invest in debt securities issued by states and local municipalities, which are typically used to pay for infrastructure construction, schools, and other government functions. These securities can be backed by taxes (revenue bonds), but others are known as " general obligation " and are not necessarily backed by a defined source. These bonds are especially attractive because of their inherent tax benefits.
History of Fund/Manager
BNY Mellon is based in New York, NY, and is the manager of DHYAX. Dreyfus High Yield Municipals Bond A debuted in March of 2007. Since then, DHYAX has accumulated assets of about $84.46 million, according to the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 0.55%, 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 -2.66%, 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. DHYAX's standard deviation over the past three years is 10.86% compared to the category average of 13.18%. The fund's standard deviation over the past 5 years is 10.93% compared to the category average of 13.88%. This makes the fund less volatile than its peers over the past half-decade.
DHYAX carries a beta of 1.17, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.28, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 33 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
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, DHYAX is a load fund. It has an expense ratio of 1.06% compared to the category average of 0.93%. From a cost perspective, DHYAX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Dreyfus High Yield Municipals Bond A ( DHYAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, Dreyfus High Yield Municipals Bond A ( DHYAX ) looks like a somewhat weak choice for investors right now.
For additional information on the Muni - Bonds 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 DHYAX too for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is DHYAX a Strong Bond Fund Right Now?
If you've been stuck searching for Muni - Bonds funds, you might want to consider passing on by Dreyfus High Yield Municipals Bond A (DHYAX - Free Report) as a possibility. DHYAX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
DHYAX is one of many Muni - Bonds funds to choose from. Muni - Bonds funds invest in debt securities issued by states and local municipalities, which are typically used to pay for infrastructure construction, schools, and other government functions. These securities can be backed by taxes (revenue bonds), but others are known as " general obligation " and are not necessarily backed by a defined source. These bonds are especially attractive because of their inherent tax benefits.
History of Fund/Manager
BNY Mellon is based in New York, NY, and is the manager of DHYAX. Dreyfus High Yield Municipals Bond A debuted in March of 2007. Since then, DHYAX has accumulated assets of about $84.46 million, according to the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 0.55%, 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 -2.66%, 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. DHYAX's standard deviation over the past three years is 10.86% compared to the category average of 13.18%. The fund's standard deviation over the past 5 years is 10.93% compared to the category average of 13.88%. This makes the fund less volatile than its peers over the past half-decade.
DHYAX carries a beta of 1.17, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.28, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 33 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
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, DHYAX is a load fund. It has an expense ratio of 1.06% compared to the category average of 0.93%. From a cost perspective, DHYAX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Dreyfus High Yield Municipals Bond A ( DHYAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, Dreyfus High Yield Municipals Bond A ( DHYAX ) looks like a somewhat weak choice for investors right now.
For additional information on the Muni - Bonds 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 DHYAX too for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.