If you've been stuck searching for Mutual Fund Equity Report funds, consider Fidelity Select Software & IT Services (FSCSX Quick QuoteFSCSX - Free Report) as a possibility. FSCSX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

History of Fund/Manager

Fidelity is responsible for FSCSX, and the company is based out of Boston, MA. Fidelity Select Software & IT Services made its debut in July of 1985, and since then, FSCSX has accumulated about $10.77 billion in assets, per the most up-to-date date available. The fund is currently managed by Ali Khan who has been in charge of the fund since July of 2014.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 15.18%, 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 10.11%, which places it in the middle third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

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. FSCSX's standard deviation over the past three years is 21.09% compared to the category average of 26.08%. Looking at the past 5 years, the fund's standard deviation is 20.9% compared to the category average of 25.48%. 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 1.03, which means it is hypothetically as volatile as 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. FSCSX's 5-year performance has produced a positive alpha of 2.77, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FSCSX is a no load fund. It has an expense ratio of 0.69% compared to the category average of 1.28%. From a cost perspective, FSCSX is actually cheaper than its peers.

Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Fidelity Select Software & IT Services ( FSCSX ) 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.

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