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Is Fidelity Nasdaq Composite (FNCMX) a Strong Mutual Fund Pick Right Now?
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Investors in search of a Mutual Fund Equity Report fund might want to consider looking at Fidelity Nasdaq Composite (FNCMX - Free Report) . While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FNCMX. Fidelity Nasdaq Composite made its debut in September of 2003, and since then, FNCMX has accumulated about $10.59 billion in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 10.27%, 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 9.07%, which places it in the middle 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, FNCMX's standard deviation comes in at 24.93%, compared to the category average of 23.87%. Looking at the past 5 years, the fund's standard deviation is 21.9% compared to the category average of 21.12%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.11, 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. The fund has produced a positive alpha over the past 5 years of 0.28, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating 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 primarily on equities that are traded in the United States.
This fund is currently holding about 91.41% stock in stocks, and these companies have an average market capitalization of $345.54 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
This fund's turnover is about 4%, so the fund managers are making fewer trades than its comparable peers.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FNCMX is a no load fund. It has an expense ratio of 0.31% compared to the category average of 0.78%. FNCMX 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
This could just be the start of your research on FNCMXin the Mutual Fund Equity Report category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well 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 Nasdaq Composite (FNCMX) a Strong Mutual Fund Pick Right Now?
Investors in search of a Mutual Fund Equity Report fund might want to consider looking at Fidelity Nasdaq Composite (FNCMX - Free Report) . While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FNCMX. Fidelity Nasdaq Composite made its debut in September of 2003, and since then, FNCMX has accumulated about $10.59 billion in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 10.27%, 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 9.07%, which places it in the middle 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, FNCMX's standard deviation comes in at 24.93%, compared to the category average of 23.87%. Looking at the past 5 years, the fund's standard deviation is 21.9% compared to the category average of 21.12%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.11, 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. The fund has produced a positive alpha over the past 5 years of 0.28, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating 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 primarily on equities that are traded in the United States.
This fund is currently holding about 91.41% stock in stocks, and these companies have an average market capitalization of $345.54 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
This fund's turnover is about 4%, so the fund managers are making fewer trades than its comparable peers.Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FNCMX is a no load fund. It has an expense ratio of 0.31% compared to the category average of 0.78%. FNCMX 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
This could just be the start of your research on FNCMXin the Mutual Fund Equity Report category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well 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.