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Is Fidelity Stock Selector Allocation Cap (FDSSX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that may not be worth investigating is Fidelity Stock Selector Allocation Cap (FDSSX - Free Report) . FDSSX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
FDSSX finds itself in the Fidelity family, based out of Boston, MA. Since Fidelity Stock Selector Allocation Cap made its debut in September of 1990, FDSSX has garnered more than $1.63 billion in assets. The fund is currently managed by Geoffrey Stein who has been in charge of the fund since November of 2009.
Performance
Of course, investors look for strong performance in funds. FDSSX has a 5-year annualized total return of 17.87% and it sits in the bottom 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 20.83%, 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. Compared to the category average of 15.88%, the standard deviation of FDSSX over the past three years is 19.72%. The standard deviation of the fund over the past 5 years is 16.51% compared to the category average of 13.11%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.06, the fund is likely to be more volatile than the market average. 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 -0.81, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
Currently, this mutual fund is holding 91.63% stock in stocks and it has a negligible amount of assets in foreign securities. Turnover is about 7%, so those in charge of the fund make fewer trades than the average comparable fund.
Expenses
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, FDSSX is a no load fund. It has an expense ratio of 0.68% compared to the category average of 1.02%. FDSSX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Fidelity Stock Selector Allocation Cap ( FDSSX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Fidelity Stock Selector Allocation Cap ( FDSSX ) looks like a somewhat weak choice for investors right now.
Want even more information about FDSSX? 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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Is Fidelity Stock Selector Allocation Cap (FDSSX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that may not be worth investigating is Fidelity Stock Selector Allocation Cap (FDSSX - Free Report) . FDSSX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
FDSSX finds itself in the Fidelity family, based out of Boston, MA. Since Fidelity Stock Selector Allocation Cap made its debut in September of 1990, FDSSX has garnered more than $1.63 billion in assets. The fund is currently managed by Geoffrey Stein who has been in charge of the fund since November of 2009.
Performance
Of course, investors look for strong performance in funds. FDSSX has a 5-year annualized total return of 17.87% and it sits in the bottom 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 20.83%, 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. Compared to the category average of 15.88%, the standard deviation of FDSSX over the past three years is 19.72%. The standard deviation of the fund over the past 5 years is 16.51% compared to the category average of 13.11%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.06, the fund is likely to be more volatile than the market average. 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 -0.81, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
Currently, this mutual fund is holding 91.63% stock in stocks and it has a negligible amount of assets in foreign securities. Turnover is about 7%, so those in charge of the fund make fewer trades than the average comparable fund.
Expenses
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, FDSSX is a no load fund. It has an expense ratio of 0.68% compared to the category average of 1.02%. FDSSX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Fidelity Stock Selector Allocation Cap ( FDSSX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Fidelity Stock Selector Allocation Cap ( FDSSX ) looks like a somewhat weak choice for investors right now.
Want even more information about FDSSX? 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.