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Is Fidelity Advisor Equity Growth M (FAEGX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Mutual Fund Equity Report fund category, make sure to pass over Fidelity Advisor Equity Growth M (FAEGX - Free Report) . FAEGX possesses a Zacks Mutual Fund Rank of 5 (Strong Sell), 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 FAEGX. Fidelity Advisor Equity Growth M made its debut in September of 1992, and since then, FAEGX has accumulated about $1.75 billion in assets, per the most up-to-date date available. The fund's current manager, Jason Weiner, has been in charge of the fund since November of 2006.
Performance
Investors naturally seek funds with strong performance. FAEGX has a 5-year annualized total return of 21% 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 23.12%, 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 15.63%, the standard deviation of FAEGX over the past three years is 18.8%. Over the past 5 years, the standard deviation of the fund is 17.06% compared to the category average of 13.91%. 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 1.02, so it is likely going to be 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. Over the past 5 years, the fund has a positive alpha of 4.36. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating 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 principally on equities that are traded in the United States.
Right now, 97.68% of this mutual fund's holdings are stocks, with an average market capitalization of $776.52 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
Retail Trade
With turnover at about 44%, this fund is making fewer trades than its comparable peers.
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, FAEGX is a load fund. It has an expense ratio of 1.21% compared to the category average of 0.99%. Looking at the fund from a cost perspective, FAEGX is actually more expensive 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 Advisor Equity Growth M ( FAEGX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, this fund looks like a poor potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds 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 Advisor Equity Growth M (FAEGX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Mutual Fund Equity Report fund category, make sure to pass over Fidelity Advisor Equity Growth M (FAEGX - Free Report) . FAEGX possesses a Zacks Mutual Fund Rank of 5 (Strong Sell), 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 FAEGX. Fidelity Advisor Equity Growth M made its debut in September of 1992, and since then, FAEGX has accumulated about $1.75 billion in assets, per the most up-to-date date available. The fund's current manager, Jason Weiner, has been in charge of the fund since November of 2006.
Performance
Investors naturally seek funds with strong performance. FAEGX has a 5-year annualized total return of 21% 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 23.12%, 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 15.63%, the standard deviation of FAEGX over the past three years is 18.8%. Over the past 5 years, the standard deviation of the fund is 17.06% compared to the category average of 13.91%. 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 1.02, so it is likely going to be 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. Over the past 5 years, the fund has a positive alpha of 4.36. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating 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 principally on equities that are traded in the United States.
Right now, 97.68% of this mutual fund's holdings are stocks, with an average market capitalization of $776.52 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Finance
- Retail Trade
With turnover at about 44%, this fund is making fewer trades than its comparable peers.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, FAEGX is a load fund. It has an expense ratio of 1.21% compared to the category average of 0.99%. Looking at the fund from a cost perspective, FAEGX is actually more expensive 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 Advisor Equity Growth M ( FAEGX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, this fund looks like a poor potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds 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.