Any investors hoping to find a Mutual Fund Bond fund could think about starting with DoubleLine Low Duration Bond N (DLSNX). DLSNX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Double Line is based in Los Angeles, CA, and is the manager of DLSNX. Since DoubleLine Low Duration Bond N made its debut in September of 2011, DLSNX has garnered more than $758.11 million 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. DLSNX has a 5-year annualized total return of 1.75% and is in the top 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 0.97%, which places it in the top 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. Over the past three years, DLSNX’s standard deviation comes in at 1.69%, compared to the category average of 10.58%. The standard deviation of the fund over the past 5 years is 2.96% compared to the category average of 11.19%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.18, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, DLSNX has a positive alpha of 0.17, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond’s rating, which is a grade ( ‘AAA’ to ‘D’ ) given to a bond that indicates its credit quality. With this letter scale in mind, DLSNX has 67.71% in high quality bonds rated at least ‘AA’ or higher. The fund has an average quality of AA, and focuses on high quality securities.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, DLSNX is a no load fund. It has an expense ratio of 0.67% compared to the category average of 0.84%. Looking at the fund from a cost perspective, DLSNX is actually cheaper than its peers.
This fund requires a minimum initial investment of $2,000, and each subsequent investment should 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, DoubleLine Low Duration Bond N ( DLSNX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Don’t stop here for your research on Mutual Fund Bond 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 DLSNX to its peers 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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