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Is Fidelity Select Industrials Portfolio (FCYIX) 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 might be worth investigating is Fidelity Select Industrials Portfolio (FCYIX - Free Report) . FCYIX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

FCYIX is a part of the Fidelity family of funds, a company based out of Boston, MA. Fidelity Select Industrials Portfolio debuted in March of 1997. Since then, FCYIX has accumulated assets of about $313.17 million, according to the most recently available information. The fund's current manager, Janet Glazer, has been in charge of the fund since December of 2018.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 7.09%, 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 5.73%, 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. FCYIX's standard deviation over the past three years is 23.56% compared to the category average of 24.05%. The fund's standard deviation over the past 5 years is 21.53% compared to the category average of 22.15%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 1.15, so investors should note that it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. FCYIX's 5-year performance has produced a negative alpha of -6.12, which means 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 mostly on equities that are traded in the United States.

Right now, 84.51% of this mutual fund's holdings are stocks, which have an average market capitalization of $38.61 billion. The fund has the heaviest exposure to the following market sectors:

  1. Industrial Cyclical
  2. Technology
  3. Retail Trade
  4. Services
Turnover is 151%, which means, on average, the fund makes more traders than comparable funds in a given year.

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, FCYIX is a no load fund. It has an expense ratio of 0.74% compared to the category average of 1.25%. FCYIX is actually cheaper than its peers when you consider factors like cost.

This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.

Bottom Line

Overall, Fidelity Select Industrials Portfolio ( FCYIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a great potential choice for investors right now.

For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into FCYIX too 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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