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Is Fidelity Select Insurance (FSPCX) a Strong Mutual Fund Pick Right Now?
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If you've been stuck searching for Mutual Fund Equity Report funds, consider Fidelity Select Insurance (FSPCX - Free Report) as a possibility. FSPCX holds 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 responsible for FSPCX, and the company is based out of Boston, MA. The Fidelity Select Insurance made its debut in December of 1985 and FSPCX has managed to accumulate roughly $301.87 million in assets, as of the most recently available information. Peter Deutsch is the fund's current manager and has held that role since June of 2013.
Performance
Investors naturally seek funds with strong performance. FSPCX has a 5-year annualized total return of 9.39% and it sits 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 12.21%, 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. FSPCX's standard deviation over the past three years is 23.27% compared to the category average of 27.18%. Over the past 5 years, the standard deviation of the fund is 19.94% compared to the category average of 23.68%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FSPCX has a 5-year beta of 0.89, which means it is likely to be less volatile than the market average. 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. FSPCX's 5-year performance has produced a positive alpha of 0.55, which means 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 mostly on equities that are traded in the United States.
Right now, 85.29% of this mutual fund's holdings are stocks, which have an average market capitalization of $42.36 billion. Turnover is 15%, which means, on average, the fund makes fewer trades than its comparable peers.
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, FSPCX is a no load fund. It has an expense ratio of 0.78% compared to the category average of 1.46%. So, FSPCX is actually cheaper than its peers from a cost perspective.
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 Insurance ( FSPCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Select Insurance ( FSPCX ) 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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Is Fidelity Select Insurance (FSPCX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Mutual Fund Equity Report funds, consider Fidelity Select Insurance (FSPCX - Free Report) as a possibility. FSPCX holds 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 responsible for FSPCX, and the company is based out of Boston, MA. The Fidelity Select Insurance made its debut in December of 1985 and FSPCX has managed to accumulate roughly $301.87 million in assets, as of the most recently available information. Peter Deutsch is the fund's current manager and has held that role since June of 2013.
Performance
Investors naturally seek funds with strong performance. FSPCX has a 5-year annualized total return of 9.39% and it sits 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 12.21%, 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. FSPCX's standard deviation over the past three years is 23.27% compared to the category average of 27.18%. Over the past 5 years, the standard deviation of the fund is 19.94% compared to the category average of 23.68%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FSPCX has a 5-year beta of 0.89, which means it is likely to be less volatile than the market average. 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. FSPCX's 5-year performance has produced a positive alpha of 0.55, which means 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 mostly on equities that are traded in the United States.
Right now, 85.29% of this mutual fund's holdings are stocks, which have an average market capitalization of $42.36 billion. Turnover is 15%, which means, on average, the fund makes fewer trades than its comparable peers.
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, FSPCX is a no load fund. It has an expense ratio of 0.78% compared to the category average of 1.46%. So, FSPCX is actually cheaper than its peers from a cost perspective.
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 Insurance ( FSPCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Select Insurance ( FSPCX ) 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.