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Is Fidelity Select Consumer Discretion (FSCPX) a Strong Mutual Fund Pick Right Now?

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On the lookout for a Mutual Fund Equity Report fund? Starting with Fidelity Select Consumer Discretion (FSCPX - Free Report) is one possibility. FSCPX carries 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 FSCPX. The Fidelity Select Consumer Discretion made its debut in June of 1990 and FSCPX has managed to accumulate roughly $419.07 million in assets, as of the most recently available information. Katherine Shaw is the fund's current manager and has held that role since August of 2017.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 15.82%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 17.42%, 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. Over the past three years, FSCPX's standard deviation comes in at 21.94%, compared to the category average of 23.78%. Looking at the past 5 years, the fund's standard deviation is 19.51% compared to the category average of 20.77%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.16, which means it is hypothetically more volatile than the market at large. 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. FSCPX's 5-year performance has produced a negative alpha of -1.1, which means managers in this portfolio find it difficult to pick 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, FSCPX is a no load fund. It has an expense ratio of 0.73% compared to the category average of 1.21%. FSCPX is actually cheaper than its peers when you consider factors like cost.

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 Select Consumer Discretion ( FSCPX ) 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.

Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.


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