Fidelity Investments, one of the largest and oldest mutual fund companies in the world, carries out operations in the United States through 10 regional offices and over 197 Investor Centers. It also has a presence in eight other countries of North America, Europe, Asia and Australia.
Fidelity boasts huge mutual fund assets under management and a wide variety of funds, covering a large spectrum of sectors. The company manages more than 504 mutual funds across a broad range of categories including domestic as well as foreign funds, and equity and fixed income funds.
Investors vest their faith in Fidelity's funds because they are known for their active management coupled with tactical investments. Obviously, not all the actively managed funds from the family always outperform their benchmark. However, the majority of funds from the category beat the broader markets, providing stiff competition to index funds as well as ETFs.
How Has Fidelity Performed So Far
As of June 30 2020, Fidelity Investments had $8.3 trillion of assets under management. It also had around $2.9 trillion of mutual fund assets. The initial investment of the majority of Fidelity mutual funds ranges from $0 to $2,500. As of Aug 31, 2020, out of the total number of funds under Fidelity, only 3.2% were load funds, while the remaining 96.8% were no-load funds.
Further, Fidelity Blue Chip Growth Fund (FBGRX - Free Report) turned out to be one of the best-performing mutual funds from this family. The fund has posted solid gains in the year-to-date period. FBGRX, which invests the majority of its assets in blue chip companies, has returned 18.9% in the year-to-date period.
Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in technology. Among the cyclical sectors, the fund family has invested the maximum in the financial services sector, while among the defensive sectors, it is invested heavily in healthcare.
Technology Select Sector SPDR (XLK) has gained 24.2% in the year-to-date period and has consistently remained the best-performing among the 11 S&P 500 sectors.
3 Best Funds to Buy Now
Given the circumstances, we have highlighted three Fidelity mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) that are poised to gain from the above-mentioned factors. Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds 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 the past performance but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Small Cap Stock Fund (FSLCX - Free Report) aims for capital growth in the long term. The fund invests the majority of its assets in common stocks of companies with small market capitalizations, similar to those included in Russell 2000A or the S&P SmallCap 600 Index. The fund invests in either growth stocks or value stocks or both.
This Zacks Small Cap Blend product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSLCXhas an annual expense ratio of 0.91%, which is below the category average of 1.10%. The fund has three and five-year returns of 4.6% and 5.1%, respectively.
Fidelity Real Estate Income Fund (FRIFX - Free Report) seeks higher-than-average income as well as appreciation of capital. It invests the lion’s share of its assets in real estate companies as well as other real-estate-related investments. The fund also invests in preferred and common stocks of real estate investment trusts, debt securities of real estate entities as well as commercial and other mortgage-backed securities.
This Sector-Real Estate product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the three and five-year benchmarks are 1.9% and 4.4%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
This fund has an annual expense ratio of 0.75%, below the category average of 1.20%.
Fidelity Select Semiconductors Portfolio (FSELX - Free Report) fund invests the bulk of its assets in common stocks of companies involved in the manufacture, design and sale of electronic equipment and components. FSELX seeks growth of capital. The fund invests in both U.S. and non-U.S. companies.
This Zacks Sector-Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSELX has an annual expense ratio of 0.72%, which is below the category average of 1.29%. The fund has three and five-year returns of 23.1% and 24.2%, respectively.
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