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Fidelity Investments, the third-biggest fund family of the U.S. in terms of asset under management, is expected to get more love from investors in the coming months. Fidelity offers a variety of investment options from sector-based funds to key actively managed funds.
The company provides investment advice, discount brokerage services and wealth management services to its clients. Low expenses, effective fund management and the ability to survive market volatility have resulted in strong fund performance. Moreover, strong performance in the first quarter of 2017 and a slew of awards make Fidelity mutual funds a strong investment choice.
Fidelity Fund’s Performance in 2017
In the first quarter of 2017, Fidelity Investments had around $1.6 trillion of assets under management. The initial investment of the majority of the Fidelity mutual funds ranges from $0 to $2,500. As of Mar 31, 2017, out of the total number of funds under Fidelity, only 4.3% were load funds, while 95.7% were no load. Additionally, in Kiplinger’s Personal Finance’s no-load fund list, four of 25 funds are from Fidelity.
In the U.S. Lipper Fund Awards 2017, 11 Fidelity mutual funds received 14 awards. Lipper categorized these funds under three, five, and 10-year time periods. Out of the 11 Fidelity funds, five U.S. and non-U.S. equity funds received awards. Three sector funds were also awarded. Additionally, one bond fund and one high income fund also secured awards.
Further, Fidelity’s one of the best performing mutual funds, Fidelity Low-Priced Stock (FLPSX - Free Report) , registered strong returns in the first quarter. FLPSX, which invests the bulk of its assets in undervalued small- and mid-cap companies, retuned 4.3% in the first quarter, higher than its benchmark index Russell 2000’s return of 2.1%.
Moreover, in Morningstar’s Fund Managers of the Year 2016 award in four different asset classes, Ford O’Neil and team — fund manager of Fidelity Total Bond Fund (FTBFX - Free Report) — got the title of U.S. Fixed-Income Fund Manager of the Year.
What Boosted Fidelity Fund’s Performance?
Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments are made in the technology sector. In the cyclical sectors, the fund family invests the maximum in the financial sector, while in defensive sectors it invests heavily in the healthcare sector.
Technology Select Sector SPDR (XLK) climbed 10.2% in the first quarter and was the biggest gainer among the S&P 500 sectors. Also, the technology mutual fund posted a positive year-to-date return of 14.1%, according to Morningstar. Also, the financial and healthcare mutual funds have registered a positive year-to-date return of 2.4% and 10.9%, respectively.
Buy These 5 Strong Buy Fidelity Mutual Funds
Fidelity Investments is one of the largest and oldest mutual fund companies in the world. It serves more than 25 million individual customers. At present, Fidelity manages more than 300 mutual funds. Fidelity Investments carries out operations in the U.S. through 10 regional offices and over 180 Investor Centers.
We have selected five Fidelity mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) and are expected to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
These funds have encouraging first quarter returns, and its minimum initial investment is within $5000. Also, these funds have low expense ratios.
Fidelity OTC (FOCPX - Free Report) seeks capital growth on a long-term basis. The majority of its assets are invested in common stocks issued mostly by small- and mid-cap companies. FOCPX may also invest at least one-fourth of its assets in securities of technology companies. It may invest in either “value” or “growth” stock or both.
FOCPX’s first quarter return is 13% and its initial investment is $2,500. Annual expense ratio of 0.90% is lower than the category average of 1.21%.
Fidelity Select Chemicals Portfolio (FSCHX - Free Report) seeks growth of capital. FSCHX invests heavily in securities of companies, which are involved in the research, development, manufacture and marketing of products or services connected to the chemical process industries. FSCHX is a non-diversified fund.
FSCHX’s first quarter return is 12.1% and its initial investment is $2,500. Annual expense ratio of 0.79% is lower than the category average of 1.43%.
Fidelity Select Materials (FSDPX - Free Report) seeks capital growth. FSDPX invests a bulk of its assets in securities of companies which are involved in processing, mining and distribution of raw materials and intermediate goods. This non-diversified fund invest in both U.S. and non-U.S. companies.
FSDPX’s first quarter return is 7.7% and its initial investment is $2,500. Annual expense ratio of 0.80% is lower than the category average of 1.43%.
Fidelity Puritan (FPURX - Free Report) seeks growth of income and capital. FPURX invests around 60% of its assets in various equity securities and the reaming 40% in debt securities and bonds which are rated below investment-grade.
FPURX’s first quarter return is 5.4% and its initial investment is $2,500. Annual expense ratio of 0.55% is lower than the category average of 0.66%.
Fidelity Select Defense & Aerospace Portfolio (FSDAX - Free Report) invests a large portion of its assets in securities of companies principally engaged in the research, manufacture, or sale of products or services related to the defense or aerospace industries.
FSDAX’s first quarter return is 5% and its initial investment is $2,500. Annual expense ratio of 0.79% is lower than the category average of 1.29%.
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5 Best Performing Fidelity Mutual Funds of Q1
Fidelity Investments, the third-biggest fund family of the U.S. in terms of asset under management, is expected to get more love from investors in the coming months. Fidelity offers a variety of investment options from sector-based funds to key actively managed funds.
The company provides investment advice, discount brokerage services and wealth management services to its clients. Low expenses, effective fund management and the ability to survive market volatility have resulted in strong fund performance. Moreover, strong performance in the first quarter of 2017 and a slew of awards make Fidelity mutual funds a strong investment choice.
Fidelity Fund’s Performance in 2017
In the first quarter of 2017, Fidelity Investments had around $1.6 trillion of assets under management. The initial investment of the majority of the Fidelity mutual funds ranges from $0 to $2,500. As of Mar 31, 2017, out of the total number of funds under Fidelity, only 4.3% were load funds, while 95.7% were no load. Additionally, in Kiplinger’s Personal Finance’s no-load fund list, four of 25 funds are from Fidelity.
In the U.S. Lipper Fund Awards 2017, 11 Fidelity mutual funds received 14 awards. Lipper categorized these funds under three, five, and 10-year time periods. Out of the 11 Fidelity funds, five U.S. and non-U.S. equity funds received awards. Three sector funds were also awarded. Additionally, one bond fund and one high income fund also secured awards.
Further, Fidelity’s one of the best performing mutual funds, Fidelity Low-Priced Stock (FLPSX - Free Report) , registered strong returns in the first quarter. FLPSX, which invests the bulk of its assets in undervalued small- and mid-cap companies, retuned 4.3% in the first quarter, higher than its benchmark index Russell 2000’s return of 2.1%.
Moreover, in Morningstar’s Fund Managers of the Year 2016 award in four different asset classes, Ford O’Neil and team — fund manager of Fidelity Total Bond Fund (FTBFX - Free Report) — got the title of U.S. Fixed-Income Fund Manager of the Year.
What Boosted Fidelity Fund’s Performance?
Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments are made in the technology sector. In the cyclical sectors, the fund family invests the maximum in the financial sector, while in defensive sectors it invests heavily in the healthcare sector.
Technology Select Sector SPDR (XLK) climbed 10.2% in the first quarter and was the biggest gainer among the S&P 500 sectors. Also, the technology mutual fund posted a positive year-to-date return of 14.1%, according to Morningstar. Also, the financial and healthcare mutual funds have registered a positive year-to-date return of 2.4% and 10.9%, respectively.
Buy These 5 Strong Buy Fidelity Mutual Funds
Fidelity Investments is one of the largest and oldest mutual fund companies in the world. It serves more than 25 million individual customers. At present, Fidelity manages more than 300 mutual funds. Fidelity Investments carries out operations in the U.S. through 10 regional offices and over 180 Investor Centers.
We have selected five Fidelity mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) and are expected to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
These funds have encouraging first quarter returns, and its minimum initial investment is within $5000. Also, these funds have low expense ratios.
Fidelity OTC (FOCPX - Free Report) seeks capital growth on a long-term basis. The majority of its assets are invested in common stocks issued mostly by small- and mid-cap companies. FOCPX may also invest at least one-fourth of its assets in securities of technology companies. It may invest in either “value” or “growth” stock or both.
FOCPX’s first quarter return is 13% and its initial investment is $2,500. Annual expense ratio of 0.90% is lower than the category average of 1.21%.
Fidelity Select Chemicals Portfolio (FSCHX - Free Report) seeks growth of capital. FSCHX invests heavily in securities of companies, which are involved in the research, development, manufacture and marketing of products or services connected to the chemical process industries. FSCHX is a non-diversified fund.
FSCHX’s first quarter return is 12.1% and its initial investment is $2,500. Annual expense ratio of 0.79% is lower than the category average of 1.43%.
Fidelity Select Materials (FSDPX - Free Report) seeks capital growth. FSDPX invests a bulk of its assets in securities of companies which are involved in processing, mining and distribution of raw materials and intermediate goods. This non-diversified fund invest in both U.S. and non-U.S. companies.
FSDPX’s first quarter return is 7.7% and its initial investment is $2,500. Annual expense ratio of 0.80% is lower than the category average of 1.43%.
Fidelity Puritan (FPURX - Free Report) seeks growth of income and capital. FPURX invests around 60% of its assets in various equity securities and the reaming 40% in debt securities and bonds which are rated below investment-grade.
FPURX’s first quarter return is 5.4% and its initial investment is $2,500. Annual expense ratio of 0.55% is lower than the category average of 0.66%.
Fidelity Select Defense & Aerospace Portfolio (FSDAX - Free Report) invests a large portion of its assets in securities of companies principally engaged in the research, manufacture, or sale of products or services related to the defense or aerospace industries.
FSDAX’s first quarter return is 5% and its initial investment is $2,500. Annual expense ratio of 0.79% is lower than the category average of 1.29%.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>