Mutual Fund Equity Report fund seekers should consider taking a look at Fidelity Blue Chip Growth (FBGRX Quick QuoteFBGRX - Free Report) . FBGRX 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 FBGRX. The Fidelity Blue Chip Growth made its debut in December of 1987 and FBGRX has managed to accumulate roughly $32.36 billion in assets, as of the most recently available information. The fund is currently managed by Sonu Kalra who has been in charge of the fund since July of 2019.

Performance

Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 14.2%, and is 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 11.93%, 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 18.33%, the standard deviation of FBGRX over the past three years is 24.81%. The standard deviation of the fund over the past 5 years is 21.79% compared to the category average of 16.51%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 1.17, so investors should note that 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. Over the past 5 years, the fund has a positive alpha of 1.65. 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 largely on equities that are traded in the United States.

The mutual fund currently has 97.78% of its holdings in stocks, which have an average market capitalization of $466.83 billion. The fund has the heaviest exposure to the following market sectors:

1. Technology
2. Retail Trade

This fund's turnover is about 36%, so the fund managers are making fewer trades than the average comparable fund.

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, FBGRX is a no load fund. It has an expense ratio of 0.78% compared to the category average of 0.99%. Looking at the fund from a cost perspective, FBGRX 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 Blue Chip Growth ( FBGRX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse 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.