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Is BlackRock Equity Dividend R (MRDVX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Large Cap Value fund? Starting with BlackRock Equity Dividend R (MRDVX - Free Report) is one possibility. MRDVX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
MRDVX is classified in the Large Cap Value segment by Zacks, which is an area full of possibilities. Investors interested in a stable income stream fund these mutual funds very appealing because they have a unique investing strategy. Large Cap Value funds invest in stocks with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This tactic often leads to low P/E ratios and high dividend yields; however, these funds'high growth opportunity are often slowed, as large-cap securities are generally in stable industries with low to moderate growth prospects.
History of Fund/Manager
MRDVX is a part of the BlackRock family of funds, a company based out of New York, NY. Since BlackRock Equity Dividend R made its debut in January of 2003, MRDVX has garnered more than $390.87 million in assets. The fund is currently managed by Tony DeSpirito who has been in charge of the fund since August of 2014.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 11.59%, and is in the bottom 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 7.13%, 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. Compared to the category average of 14.51%, the standard deviation of MRDVX over the past three years is 15.48%. Over the past 5 years, the standard deviation of the fund is 17.25% compared to the category average of 15.91%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.84, 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. MRDVX's 5-year performance has produced a negative alpha of -2.36, which means 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, MRDVX is a no load fund. It has an expense ratio of 1.22% compared to the category average of 0.95%. So, MRDVX is actually more expensive than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $100 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, even with its comparatively weak performance, average downside risk, and higher fees, BlackRock Equity Dividend R ( MRDVX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
Your research on the Large Cap Value segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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 BlackRock Equity Dividend R (MRDVX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Large Cap Value fund? Starting with BlackRock Equity Dividend R (MRDVX - Free Report) is one possibility. MRDVX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
MRDVX is classified in the Large Cap Value segment by Zacks, which is an area full of possibilities. Investors interested in a stable income stream fund these mutual funds very appealing because they have a unique investing strategy. Large Cap Value funds invest in stocks with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This tactic often leads to low P/E ratios and high dividend yields; however, these funds'high growth opportunity are often slowed, as large-cap securities are generally in stable industries with low to moderate growth prospects.
History of Fund/Manager
MRDVX is a part of the BlackRock family of funds, a company based out of New York, NY. Since BlackRock Equity Dividend R made its debut in January of 2003, MRDVX has garnered more than $390.87 million in assets. The fund is currently managed by Tony DeSpirito who has been in charge of the fund since August of 2014.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 11.59%, and is in the bottom 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 7.13%, 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. Compared to the category average of 14.51%, the standard deviation of MRDVX over the past three years is 15.48%. Over the past 5 years, the standard deviation of the fund is 17.25% compared to the category average of 15.91%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.84, 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. MRDVX's 5-year performance has produced a negative alpha of -2.36, which means 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, MRDVX is a no load fund. It has an expense ratio of 1.22% compared to the category average of 0.95%. So, MRDVX is actually more expensive than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $100 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, even with its comparatively weak performance, average downside risk, and higher fees, BlackRock Equity Dividend R ( MRDVX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
Your research on the Large Cap Value segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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.