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Is Fidelity Advisor Technology M (FATEX) a Strong Mutual Fund Pick Right Now?

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Any investors hoping to find a Mutual Fund Equity Report fund could think about starting with Fidelity Advisor Technology M (FATEX - Free Report) . FATEX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

Fidelity is responsible for FATEX, and the company is based out of Boston, MA. Fidelity Advisor Technology M debuted in September of 1996. Since then, FATEX has accumulated assets of about $661.18 million, according to the most recently available information. The fund's current manager, Adam Benjamin, has been in charge of the fund since July of 2020.

Performance

Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 32.24%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 38.29%, 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 FATEX over the past three years is 22.29% compared to the category average of 16.83%. The fund's standard deviation over the past 5 years is 19.84% compared to the category average of 13.99%. 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 1.12, which means it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a positive alpha over the past 5 years of 9.83, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FATEX is a load fund. It has an expense ratio of 1.22% compared to the category average of 1.35%. FATEX is actually cheaper than its peers when you consider factors like cost.

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

Bottom Line

Overall, Fidelity Advisor Technology M ( FATEX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Fidelity Advisor Technology M ( FATEX ) looks like a good potential choice for investors right now.

Want even more information about FATEX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.


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