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Is Fidelity Select Chemicals (FSCHX) a Strong Mutual Fund Pick Right Now?
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If you have been looking for Mutual Fund Equity Report fund category, a potential starting could be Fidelity Select Chemicals (FSCHX - Free Report) . FSCHX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
FSCHX finds itself in the Fidelity family, based out of Boston, MA. Fidelity Select Chemicals debuted in July of 1985. Since then, FSCHX has accumulated assets of about $699.41 million, according to the most recently available information. The fund is currently managed by David Wagner who has been in charge of the fund since August of 2019.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 5.06%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 11.02%, 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 28.49%, the standard deviation of FSCHX over the past three years is 24.35%. The fund's standard deviation over the past 5 years is 23.02% compared to the category average of 25.74%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.15, the fund 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. Over the past 5 years, the fund has a negative alpha of -7.65. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, FSCHX is a no load fund. It has an expense ratio of 0.74% compared to the category average of 1.25%. FSCHX 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 Select Chemicals ( FSCHX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.
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Is Fidelity Select Chemicals (FSCHX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Mutual Fund Equity Report fund category, a potential starting could be Fidelity Select Chemicals (FSCHX - Free Report) . FSCHX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
FSCHX finds itself in the Fidelity family, based out of Boston, MA. Fidelity Select Chemicals debuted in July of 1985. Since then, FSCHX has accumulated assets of about $699.41 million, according to the most recently available information. The fund is currently managed by David Wagner who has been in charge of the fund since August of 2019.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 5.06%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 11.02%, 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 28.49%, the standard deviation of FSCHX over the past three years is 24.35%. The fund's standard deviation over the past 5 years is 23.02% compared to the category average of 25.74%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.15, the fund 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. Over the past 5 years, the fund has a negative alpha of -7.65. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, FSCHX is a no load fund. It has an expense ratio of 0.74% compared to the category average of 1.25%. FSCHX 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 Select Chemicals ( FSCHX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.