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Is Fidelity Magellan Fund (FMAGX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Large Cap Growth fund category, Fidelity Magellan Fund (FMAGX - Free Report) could be a potential option. FMAGX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
FMAGX is classified in the Large Cap Growth segment by Zacks, an area full of possibilities. Companies are usually considered to be large-cap if their stock market valuation is more than $10 billion. Large Cap Growth mutual funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers.
History of Fund/Manager
Fidelity is responsible for FMAGX, and the company is based out of Boston, MA. The Fidelity Magellan Fund made its debut in May of 1963 and FMAGX has managed to accumulate roughly $20.31 billion in assets, as of the most recently available information. The fund is currently managed by Sammy Simnegar who has been in charge of the fund since February of 2019.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 15.02%, and it sits in the middle 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 15.86%, 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. FMAGX's standard deviation over the past three years is 18.51% compared to the category average of 16.74%. The fund's standard deviation over the past 5 years is 15.32% compared to the category average of 14.22%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FMAGX has a 5-year beta of 0.97, which means it is likely to be as volatile as 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. Over the past 5 years, the fund has a positive alpha of 1.38. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining 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 mostly on equities that are traded in the United States.
Right now, 76.22% of this mutual fund's holdings are stocks, which have an average market capitalization of $325.79 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
With turnover at about 106%, this fund makes 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, FMAGX is a no load fund. It has an expense ratio of 0.84% compared to the category average of 1.04%. So, FMAGX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Fidelity Magellan Fund ( FMAGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Fidelity Magellan Fund ( FMAGX ) looks like a great potential choice for investors right now.
Don't stop here for your research on Large Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FMAGX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is Fidelity Magellan Fund (FMAGX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Large Cap Growth fund category, Fidelity Magellan Fund (FMAGX - Free Report) could be a potential option. FMAGX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
FMAGX is classified in the Large Cap Growth segment by Zacks, an area full of possibilities. Companies are usually considered to be large-cap if their stock market valuation is more than $10 billion. Large Cap Growth mutual funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers.
History of Fund/Manager
Fidelity is responsible for FMAGX, and the company is based out of Boston, MA. The Fidelity Magellan Fund made its debut in May of 1963 and FMAGX has managed to accumulate roughly $20.31 billion in assets, as of the most recently available information. The fund is currently managed by Sammy Simnegar who has been in charge of the fund since February of 2019.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 15.02%, and it sits in the middle 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 15.86%, 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. FMAGX's standard deviation over the past three years is 18.51% compared to the category average of 16.74%. The fund's standard deviation over the past 5 years is 15.32% compared to the category average of 14.22%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FMAGX has a 5-year beta of 0.97, which means it is likely to be as volatile as 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. Over the past 5 years, the fund has a positive alpha of 1.38. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining 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 mostly on equities that are traded in the United States.
Right now, 76.22% of this mutual fund's holdings are stocks, which have an average market capitalization of $325.79 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
With turnover at about 106%, this fund makes 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, FMAGX is a no load fund. It has an expense ratio of 0.84% compared to the category average of 1.04%. So, FMAGX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Fidelity Magellan Fund ( FMAGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Fidelity Magellan Fund ( FMAGX ) looks like a great potential choice for investors right now.
Don't stop here for your research on Large Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FMAGX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.