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Fidelity mutual funds got more attention from investors during June to September. After all, Fidelity offers a variety of investment options from sector-based funds to the key actively managed funds. The company provides investment advice, discount brokerage services, retirement services, wealth management services, securities execution, and clearance and life insurance products to its clients.
At Fidelity, a large group of investment professionals carry out extensive and in-depth research to provide potential investment avenues worldwide for their investors. To top it, low expenses, effective fund management and the ability to survive market volatility have resulted in strong fund performance. Let’s look at the best-performing Fidelity mutual funds of Q3.
Fidelity’s Performance in Q3
By the end of the third quarter, Fidelity Investments had around $8.3 trillion of assets under management. The initial investment of the majority of Fidelity mutual funds ranges from $0 to $2,500. As of Sep 30, 2020, out of the total number of funds under Fidelity, only 3.2% were load funds, while the remaining 96.8% were no load funds.
Further, Fidelity Advisor Growth Opportunities Fund Class M (FAGOX - Free Report) turned up as one of the best-performing mutual funds from the Fidelity family. The fund posted solid gains in the period between July and September. FAGOX, which invests a bulk of its assets in common stocks of companies with above-average growth potential, returned 17% in the third quarter and has added 47.1% so far this year.
What Contributed to Fidelity’s Gains?
Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in the technology sector. Among the cyclical sectors, the fund family invested the maximum in the financial services sector, while among the defensive sectors it invested heavily in healthcare.
Technology Select Sector SPDR (XLK) has climbed 29.1% in the YTD period and has remained the best-performing sector so far this year among the 11 S&P 500 sectors.
4 Best Funds to Buy Now
Given such circumstances, we have highlighted four Fidelity mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from such factors. Moreover, these funds have encouraging third-quarter and YTD returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Technology Portfolio (FSPTX - Free Report) aims for capital growth. The fund invests the majority of its assets in securities of companies principally engaged in offering, using, or developing products, processes, or services that will provide or will benefit significantly from technological advances and improvements. The non-diversified fund invests in securities of U.S. and non-U.S. issuers alike.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSPTXhas a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.71%, which is below the category average of 1.29%. The fund has third-quarter and YTD returns of 16.8% and 45.8%, respectively.
Fidelity Select Medical Technology And Devices Portfolio (FSMEX - Free Report) fund invests a large portion of its assets in securities of companies engaged in manufacturing and distribution of medical devices and equipment. It also invests in companies enabling drug discovery, and companies providing information technology services primarily to health care providers.The fund invests in both U.S. and non-U.S. stocks.
This Zacks sector – Health product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSMEX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.71%, which is below the category average of 1.26%. The fund has third-quarter and YTD returns of 12.2% and 17.2%, respectively.
Fidelity Select Retailing Portfolio (FSRPX - Free Report) aims for capital appreciation. This non-diversified fund invests a large portion of its assets in the common stock of companies engaged in merchandising finished goods and services, primarily to individual consumers.
This Zacks Sector – Other product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSRPX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.74%, which is below the category average of 1.27%. The fund has third-quarter and YTD returns of 13.2% and 29.5%, respectively.
Fidelity Select Software & IT Services Portfolio (FSCSX - Free Report) fund invests the majority of its assets in companies whose primary operations are related to software or information-based services. It primarily focuses on acquiring common stocks of both domestic and foreign companies.
This Sector - Tech product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the third quarter and YTD benchmarks are 9% and 35.9%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund carries a Zacks Mutual Fund Rank #2 and has an annual expense ratio of 0.71%, which is below the category average of 1.29%.
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4 Best-Performing Fidelity Mutual Funds of Q3
Fidelity mutual funds got more attention from investors during June to September. After all, Fidelity offers a variety of investment options from sector-based funds to the key actively managed funds. The company provides investment advice, discount brokerage services, retirement services, wealth management services, securities execution, and clearance and life insurance products to its clients.
At Fidelity, a large group of investment professionals carry out extensive and in-depth research to provide potential investment avenues worldwide for their investors. To top it, low expenses, effective fund management and the ability to survive market volatility have resulted in strong fund performance. Let’s look at the best-performing Fidelity mutual funds of Q3.
Fidelity’s Performance in Q3
By the end of the third quarter, Fidelity Investments had around $8.3 trillion of assets under management. The initial investment of the majority of Fidelity mutual funds ranges from $0 to $2,500. As of Sep 30, 2020, out of the total number of funds under Fidelity, only 3.2% were load funds, while the remaining 96.8% were no load funds.
Further, Fidelity Advisor Growth Opportunities Fund Class M (FAGOX - Free Report) turned up as one of the best-performing mutual funds from the Fidelity family. The fund posted solid gains in the period between July and September. FAGOX, which invests a bulk of its assets in common stocks of companies with above-average growth potential, returned 17% in the third quarter and has added 47.1% so far this year.
What Contributed to Fidelity’s Gains?
Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in the technology sector. Among the cyclical sectors, the fund family invested the maximum in the financial services sector, while among the defensive sectors it invested heavily in healthcare.
Technology Select Sector SPDR (XLK) has climbed 29.1% in the YTD period and has remained the best-performing sector so far this year among the 11 S&P 500 sectors.
4 Best Funds to Buy Now
Given such circumstances, we have highlighted four Fidelity mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from such factors. Moreover, these funds have encouraging third-quarter and YTD returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Technology Portfolio (FSPTX - Free Report) aims for capital growth. The fund invests the majority of its assets in securities of companies principally engaged in offering, using, or developing products, processes, or services that will provide or will benefit significantly from technological advances and improvements. The non-diversified fund invests in securities of U.S. and non-U.S. issuers alike.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSPTXhas a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.71%, which is below the category average of 1.29%. The fund has third-quarter and YTD returns of 16.8% and 45.8%, respectively.
Fidelity Select Medical Technology And Devices Portfolio (FSMEX - Free Report) fund invests a large portion of its assets in securities of companies engaged in manufacturing and distribution of medical devices and equipment. It also invests in companies enabling drug discovery, and companies providing information technology services primarily to health care providers.The fund invests in both U.S. and non-U.S. stocks.
This Zacks sector – Health product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSMEX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.71%, which is below the category average of 1.26%. The fund has third-quarter and YTD returns of 12.2% and 17.2%, respectively.
Fidelity Select Retailing Portfolio (FSRPX - Free Report) aims for capital appreciation. This non-diversified fund invests a large portion of its assets in the common stock of companies engaged in merchandising finished goods and services, primarily to individual consumers.
This Zacks Sector – Other product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSRPX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.74%, which is below the category average of 1.27%. The fund has third-quarter and YTD returns of 13.2% and 29.5%, respectively.
Fidelity Select Software & IT Services Portfolio (FSCSX - Free Report) fund invests the majority of its assets in companies whose primary operations are related to software or information-based services. It primarily focuses on acquiring common stocks of both domestic and foreign companies.
This Sector - Tech product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the third quarter and YTD benchmarks are 9% and 35.9%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund carries a Zacks Mutual Fund Rank #2 and has an annual expense ratio of 0.71%, which is below the category average of 1.29%.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>