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Is Fidelity Select Automotive (FSAVX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Mutual Fund Equity Report fund category, Fidelity Select Automotive (FSAVX - Free Report) could be a potential option. FSAVX possesses a Zacks Mutual Fund Rank of 2 (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 FSAVX. Fidelity Select Automotive made its debut in June of 1986, and since then, FSAVX has accumulated about $244.23 million in assets, per the most up-to-date date available. Elliot Mattingly is the fund's current manager and has held that role since April of 2017.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 23.69%, and it sits 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 39.27%, 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. FSAVX's standard deviation over the past three years is 27.63% compared to the category average of 23.25%. The fund's standard deviation over the past 5 years is 23.17% compared to the category average of 20.21%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.28, the fund is likely to be more volatile than the market average. 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. FSAVX's 5-year performance has produced a positive alpha of 1.06, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, FSAVX is a no load fund. It has an expense ratio of 0.78% compared to the category average of 1.21%. From a cost perspective, FSAVX 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 Automotive ( FSAVX ) 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.
Don't stop here for your research on Mutual Fund Equity Report 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 FSAVX 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 Select Automotive (FSAVX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Mutual Fund Equity Report fund category, Fidelity Select Automotive (FSAVX - Free Report) could be a potential option. FSAVX possesses a Zacks Mutual Fund Rank of 2 (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 FSAVX. Fidelity Select Automotive made its debut in June of 1986, and since then, FSAVX has accumulated about $244.23 million in assets, per the most up-to-date date available. Elliot Mattingly is the fund's current manager and has held that role since April of 2017.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 23.69%, and it sits 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 39.27%, 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. FSAVX's standard deviation over the past three years is 27.63% compared to the category average of 23.25%. The fund's standard deviation over the past 5 years is 23.17% compared to the category average of 20.21%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.28, the fund is likely to be more volatile than the market average. 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. FSAVX's 5-year performance has produced a positive alpha of 1.06, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, FSAVX is a no load fund. It has an expense ratio of 0.78% compared to the category average of 1.21%. From a cost perspective, FSAVX 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 Automotive ( FSAVX ) 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.
Don't stop here for your research on Mutual Fund Equity Report 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 FSAVX 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.