If investors are looking at the Allocation Balanced fund category, make sure to pass over BlackRock Global Allocation A (MDLOX). MDLOX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.

The world of Zacks' Allocation Balanced funds is an area filled with options, such as MDLOX. These funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. For investors, Allocation Balanced funds can provide an entry point into diversified mutual funds, and present core holding options for a portfolio of funds.

BlackRock is based in New York, NY, and is the manager of MDLOX. BlackRock Global Allocation A made its debut in October of 1994, and since then, MDLOX has accumulated about $8.52 billion in assets, per the most up-to-date date available. The fund is currently managed by Russ Koesterich who has been in charge of the fund since January of 2017.

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 7.83%, and is in the middle 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 10.81%, 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. Over the past three years, MDLOX's standard deviation comes in at 11.23%, compared to the category average of 13.43%. The standard deviation of the fund over the past 5 years is 11.59% compared to the category average of 12.91%. This makes the fund less volatile than its peers over the past half-decade.

Investors should note that the fund has a 5-year beta of 0.66, which means it is hypothetically less volatile than the market at large. 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. Over the past 5 years, the fund has a negative alpha of -3.75. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

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, MDLOX is a load fund. It has an expense ratio of 1.10% compared to the category average of 0.90%. Looking at the fund from a cost perspective, MDLOX is actually more expensive than its peers.

This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Overall, BlackRock Global Allocation A ( MDLOX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.

This could just be the start of your research on MDLOXin the Allocation Balanced category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Get Your Free (MDLOX): Fund Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research