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Is Fidelity Blue Chip Growth Fund (FBGRX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Mutual Fund Equity Report fund? Starting with Fidelity Blue Chip Growth Fund (FBGRX - Free Report) is one possibility. FBGRX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Fidelity is responsible for FBGRX, and the company is based out of Boston, MA. Fidelity Blue Chip Growth Fund debuted in December of 1987. Since then, FBGRX has accumulated assets of about $45.26 billion, according to the most recently available information. The fund's current manager, Sonu Kalra, has been in charge of the fund since July of 2009.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 16.3%, 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 11.84%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. FBGRX's standard deviation over the past three years is 25.15% compared to the category average of 18.03%. The fund's standard deviation over the past 5 years is 24.45% compared to the category average of 18.33%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.18, which means it is hypothetically more volatile than the market at large. 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. FBGRX has generated a positive alpha over the past five years of 2.77, demonstrating 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 largely on equities that are traded in the United States.
As of the last filing date, the mutual fund has 93.75% of its assets in stocks and it has 6.58% of assets in foreign securities. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
Turnover is 23%, which means this fund makes fewer trades than the average comparable fund.
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, FBGRX is a no load fund. It has an expense ratio of 0.71% compared to the category average of 0.99%. From a cost perspective, FBGRX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Fidelity Blue Chip Growth Fund ( FBGRX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Fidelity Blue Chip Growth Fund ( FBGRX ) looks like a good potential choice for investors right now.
Want even more information about FBGRX? 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 Blue Chip Growth Fund (FBGRX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Mutual Fund Equity Report fund? Starting with Fidelity Blue Chip Growth Fund (FBGRX - Free Report) is one possibility. FBGRX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Fidelity is responsible for FBGRX, and the company is based out of Boston, MA. Fidelity Blue Chip Growth Fund debuted in December of 1987. Since then, FBGRX has accumulated assets of about $45.26 billion, according to the most recently available information. The fund's current manager, Sonu Kalra, has been in charge of the fund since July of 2009.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 16.3%, 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 11.84%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. FBGRX's standard deviation over the past three years is 25.15% compared to the category average of 18.03%. The fund's standard deviation over the past 5 years is 24.45% compared to the category average of 18.33%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.18, which means it is hypothetically more volatile than the market at large. 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. FBGRX has generated a positive alpha over the past five years of 2.77, demonstrating 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 largely on equities that are traded in the United States.
As of the last filing date, the mutual fund has 93.75% of its assets in stocks and it has 6.58% of assets in foreign securities. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
Turnover is 23%, which means this fund makes fewer trades than the average comparable fund.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, FBGRX is a no load fund. It has an expense ratio of 0.71% compared to the category average of 0.99%. From a cost perspective, FBGRX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Fidelity Blue Chip Growth Fund ( FBGRX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Fidelity Blue Chip Growth Fund ( FBGRX ) looks like a good potential choice for investors right now.
Want even more information about FBGRX? 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.