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Is Fidelity Trend Fund (FTRNX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Mutual Fund Equity Report fund? Starting with Fidelity Trend Fund (FTRNX - Free Report) is one possibility. FTRNX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FTRNX. The Fidelity Trend Fund made its debut in December of 1961 and FTRNX has managed to accumulate roughly $2.42 billion in assets, as of the most recently available information. The fund's current manager, Shilpa Mehra, has been in charge of the fund since August of 2018.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 12.98%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 12.58%, which places it in the top 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. Over the past three years, FTRNX's standard deviation comes in at 23.77%, compared to the category average of 22.33%. Looking at the past 5 years, the fund's standard deviation is 20.92% compared to the category average of 20.02%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FTRNX has a 5-year beta of 1.11, which means it is likely to be more volatile than the market average. 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. FTRNX has generated a positive alpha over the past five years of 0.35, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring 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, 86.38% of this mutual fund's holdings are stocks, which have an average market capitalization of $426.46 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
Turnover is 33%, which means, on average, the fund makes fewer trades than comparable funds.
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, FTRNX is a no load fund. It has an expense ratio of 0.60% compared to the category average of 0.99%. From a cost perspective, FTRNX is actually cheaper than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Fidelity Trend Fund ( FTRNX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Trend Fund ( FTRNX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds 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 Trend Fund (FTRNX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Mutual Fund Equity Report fund? Starting with Fidelity Trend Fund (FTRNX - Free Report) is one possibility. FTRNX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FTRNX. The Fidelity Trend Fund made its debut in December of 1961 and FTRNX has managed to accumulate roughly $2.42 billion in assets, as of the most recently available information. The fund's current manager, Shilpa Mehra, has been in charge of the fund since August of 2018.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 12.98%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 12.58%, which places it in the top 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. Over the past three years, FTRNX's standard deviation comes in at 23.77%, compared to the category average of 22.33%. Looking at the past 5 years, the fund's standard deviation is 20.92% compared to the category average of 20.02%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FTRNX has a 5-year beta of 1.11, which means it is likely to be more volatile than the market average. 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. FTRNX has generated a positive alpha over the past five years of 0.35, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring 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, 86.38% of this mutual fund's holdings are stocks, which have an average market capitalization of $426.46 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
Turnover is 33%, which means, on average, the fund makes fewer trades than comparable funds.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, FTRNX is a no load fund. It has an expense ratio of 0.60% compared to the category average of 0.99%. From a cost perspective, FTRNX is actually cheaper than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Fidelity Trend Fund ( FTRNX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Trend Fund ( FTRNX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds 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.