If you have been looking for Mutual Fund Equity Report funds, it would not be wise to start your search with Delaware Healthcare I (DLHIX). DLHIX 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
Delaware Investments is based in Philadelphia, PA, and is the manager of DLHIX. Delaware Healthcare I debuted in September of 2007. Since then, DLHIX has accumulated assets of about $536.04 million, according to the most recently available information. The fund’s current manager, Liu Er Chen, has been in charge of the fund since September of 2007.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. DLHIX has a 5-year annualized total return of 7.94% 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 5.65%, 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. DLHIX’s standard deviation over the past three years is 13.84% compared to the category average of 16.16%. The standard deviation of the fund over the past 5 years is 17.14% compared to the category average of 16.05%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.71, so it is likely going to be less volatile than the market at large. 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. The fund has produced a negative alpha over the past 5 years of -0.23, which shows that 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, DLHIX is a no load fund. It has an expense ratio of 0.99% compared to the category average of 1.30%. From a cost perspective, DLHIX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Delaware Healthcare I ( DLHIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Delaware Healthcare I ( DLHIX ) looks like a somewhat weak choice for investors right now.
Want even more information about DLHIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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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