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If you have been looking for Small Cap Growth funds, a place to start could be Oppenheimer Discovery Y (ODIYX). ODIYX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
ODIYX is part of the Small Cap Growth category, and this segment boasts an array of many other possible options. Small Cap Growth mutual funds usually focus their portfolios on stocks with large growth opportunities and a market cap of under $2 billion. These portfolios tend to feature small companies in up-and-coming industries and markets.
History of Fund/Manager
ODIYX is a part of the Invesco family of funds, a company based out of Kansas City, MO. Since Oppenheimer Discovery Y made its debut in June of 1994, ODIYX has garnered more than $1.87 billion in assets. The fund is currently managed by Ronald J. Zibelli Jr. who has been in charge of the fund since May of 2006.
Performance
Of course, investors look for strong performance in funds. ODIYX has a 5-year annualized total return of 11.59% and it sits 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 -0.24%, which places it in the middle 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. The standard deviation of ODIYX over the past three years is 23.6% compared to the category average of 15.82%. The fund's standard deviation over the past 5 years is 23.46% compared to the category average of 16.85%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. ODIYX has a 5-year beta of 1.11, which means it is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. ODIYX has generated a negative alpha over the past five years of -2.94, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.