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Is Fidelity Select Electronics (FSELX) a Strong Mutual Fund Pick Right Now?

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Having trouble finding a Mutual Fund Equity Report fund? Fidelity Select Electronics (FSELX - Free Report) is a potential starting point. FSELX 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 based in Boston, MA, and is the manager of FSELX. The Fidelity Select Electronics made its debut in July of 1985 and FSELX has managed to accumulate roughly $9.39 billion in assets, as of the most recently available information. The fund's current manager, Adam Benjamin, has been in charge of the fund since March of 2020.

Performance

Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 35.3%, and it sits 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 50.47%, 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. Compared to the category average of 23.7%, the standard deviation of FSELX over the past three years is 26.22%. The fund's standard deviation over the past 5 years is 23.37% compared to the category average of 19.94%. 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 1.19, so it is likely going to be more volatile than 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. With a positive alpha of 13.04, 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, FSELX is a no load fund. It has an expense ratio of 0.68% compared to the category average of 1.35%. Looking at the fund from a cost perspective, FSELX is actually cheaper than its peers.

While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.

Bottom Line

Overall, Fidelity Select Electronics ( FSELX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

This could just be the start of your research on FSELXin the Mutual Fund Equity Report category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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.


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