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Is Fidelity OTC Portfolio K (FOCKX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Mid Cap Blend category, but where should you start your research? Well, one fund that you should consider investigating is Fidelity OTC Portfolio K (FOCKX - Free Report) . FOCKX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
FOCKX is one of many funds to choose from. Because Mid Cap Blend mutual funds typically feature a portfolio filled with stocks of various sizes and styles, it allows for a diversification strategy focusing on companies with market caps between $2 billion and $10 billion. Mid-cap blends, while offering exciting growth potential, income opportunities, and value picks, offer some stability as well.
History of Fund/Manager
Fidelity is responsible for FOCKX, and the company is based out of Boston, MA. Since Fidelity OTC Portfolio K made its debut in May of 2008, FOCKX has garnered more than $6.20 billion in assets. Sonu Kalra is the fund's current manager and has held that role since September of 2017.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 14.22%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 20.4%, 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. The standard deviation of the fund over the past 5 years is 16.12% compared to the category average of 1.05%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.22, 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. Over the past 5 years, the fund has a positive alpha of 1.33. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FOCKX is a no load fund and it has an expense ratio of 0.77%.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Bottom Line
With a rank of 'hold' we aren't getting a good signal one way or another on FOCKX. That is why it might be a good idea to consider other items, such as the fund's expense ratio of 0.77%, and how this compares to other potential options being considered for investment. If cheaper, it might make a decent choice, but a more expensive fund might be worth avoiding. Just make sure to pay attention to its rank in case it shifts in the near future.
For additional information on this product, or to compare it to other mutual funds in the Mid Cap Blend, make sure to go to www.zacks.com/funds/mutual-funds for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is Fidelity OTC Portfolio K (FOCKX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Mid Cap Blend category, but where should you start your research? Well, one fund that you should consider investigating is Fidelity OTC Portfolio K (FOCKX - Free Report) . FOCKX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
FOCKX is one of many funds to choose from. Because Mid Cap Blend mutual funds typically feature a portfolio filled with stocks of various sizes and styles, it allows for a diversification strategy focusing on companies with market caps between $2 billion and $10 billion. Mid-cap blends, while offering exciting growth potential, income opportunities, and value picks, offer some stability as well.
History of Fund/Manager
Fidelity is responsible for FOCKX, and the company is based out of Boston, MA. Since Fidelity OTC Portfolio K made its debut in May of 2008, FOCKX has garnered more than $6.20 billion in assets. Sonu Kalra is the fund's current manager and has held that role since September of 2017.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 14.22%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 20.4%, 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. The standard deviation of the fund over the past 5 years is 16.12% compared to the category average of 1.05%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.22, 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. Over the past 5 years, the fund has a positive alpha of 1.33. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FOCKX is a no load fund and it has an expense ratio of 0.77%.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Bottom Line
With a rank of 'hold' we aren't getting a good signal one way or another on FOCKX. That is why it might be a good idea to consider other items, such as the fund's expense ratio of 0.77%, and how this compares to other potential options being considered for investment. If cheaper, it might make a decent choice, but a more expensive fund might be worth avoiding. Just make sure to pay attention to its rank in case it shifts in the near future.
For additional information on this product, or to compare it to other mutual funds in the Mid Cap Blend, make sure to go to www.zacks.com/funds/mutual-funds for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.