Back to top

Image: Bigstock

Is Fidelity New Millennium (FMILX) a Strong Mutual Fund Pick Right Now?

Read MoreHide Full Article

Having trouble finding an All Cap Growth fund? Well, Fidelity New Millennium (FMILX - Free Report) would not be a good potential starting point right now. FMILX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.

Objective

Tickers is classified in the All Cap Growth segment by Zacks, an area full of possibilities. All Cap Growth funds have holdings across small, medium, and large-cap levels in order to increase diversification. As long as stocks demonstrate strong growth characteristics, these portfolios will invest in various equity securities regardless of company size.

History of Fund/Manager

FMILX is a part of the Fidelity family of funds, a company based out of Boston, MA. Fidelity New Millennium debuted in December of 1992. Since then, FMILX has accumulated assets of about $2.70 billion, according to the most recently available information. John D. Roth is the fund's current manager and has held that role since July of 2006.

Performance

Of course, investors look for strong performance in funds. FMILX has a 5-year annualized total return of 12.98% and it sits in the bottom 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 10.59%, which places it in the bottom 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. Over the past three years, FMILX's standard deviation comes in at 21.2%, compared to the category average of 19.35%. The fund's standard deviation over the past 5 years is 16.92% compared to the category average of 15.72%. 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 1.03, which means it is hypothetically as volatile as the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. FMILX's 5-year performance has produced a negative alpha of -3.56, which means managers in this portfolio find it difficult to pick 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 primarily on equities that are traded in the United States.

As of the last filing date, the mutual fund has 84.69% of its assets in stocks, which have an average market capitalization of $99.04 billion. The fund has the heaviest exposure to the following market sectors:

  1. Finance
  2. Industrial Cyclical
  3. Other
With turnover at about 32%, this fund makes fewer trades than the average comparable fund.

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, FMILX is a no load fund. It has an expense ratio of 0.47% compared to the category average of 0.95%. From a cost perspective, FMILX is actually cheaper than its peers.

This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.

Bottom Line

Overall, Fidelity New Millennium ( FMILX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.

Don't stop here for your research on All 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 FMILX to its peers as well 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Fidelity New Millennium (FMILX) - free report >>

Published in