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4 Fidelity Mutual Funds to Buy as the Market Ebbs and Flows
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Founded in 1946 and headquartered in Boston, MA, Fidelity Investments is one of the most trusted investment management companies in the world. It currently has more than 42 million individual investors and is one of the largest fund families in the United States.
Effective fund management and the ability to survive market volatility have resulted in Fidelity’s strong performance over the years. Lower expenses have also helped. Their zero-commission trading of stocks and ETFs is in line with the industry standard, but the brokerage platform stands out by offering zero-commission trading for over-the-counter stocks as well.
Fidelity reported that it had $4.4 trillion worth of total discretionary assets under management and $11.5 trillion of assets under administration as of Sep 30, 2023, and added 1.6 million new retail accounts over the past 12 months.
Here are a few other broad reasons why building positions in this Boston-based investment giant should be prudent at this juncture when the market is experiencing peaks and troughs based on the Fed’s interest rate outlook. Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive.
From the sensitive sectors, most investments are made in technology, one of the best-performing sectors from last year. The company has been delving into the new artificial intelligence (AI) boom by investing in and promoting AI firms like CoreWeave and Vast Data.
In the cyclical sectors, the fund family invests the maximum in the financial sector. In the defensives, the fund family's major focus is on the healthcare sector, which ended 2023 on a high and has started the new year with a bang.
Investing in these mutual funds may provide the much-required stability and growth potential in a market that is expected to remain volatile for a while. Hence, astute investors should consider such funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected four mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000, as well as carry a low expense ratio.
Select Pharmaceuticals Portfolio (FPHAX - Free Report) invests the majority of its net assets in companies engaged in the research, development, manufacture, sale, or distribution of pharmaceuticals and drugs. FPHAX invests primarily in common stocks, and its advisors use fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions for their investment purposes.
Karim Suwwan de Felipe has been the lead manager of FPHAX since July 2017. Three top holdings for FPHAX are 21.3% in Eli Lilly, 11.9% in Novo Nordisk and 9.5% in AstraZeneca.
FPHAX’s 3-year and 5-year annualized returns are 7.3% and 12.5%, respectively, and its net expense ratio is 0.73% compared to the category average of 1.03%. FPHAX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Capital Appreciation (FCAKX - Free Report) invests primarily in common stocks of both domestic and foreign issuers. FCAKX invests both in growth and value stocks, and its advisors use fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions for their investment purposes.
Jason Weiner has been the lead manager of FCAKX since October 2018. Three top holdings for FCAKX are 10.6% in Microsoft, 4.8% in Nvidia and 2.6% in Boston Scientific.
FCAKX’s 3-year and 5-year annualized returns are 8.1% and 17.1%, respectively, and its net expense ratio is 0.68% compared to the category average of 0.99%. FCAKX has a Zacks Mutual Fund Rank #1.
Fidelity Advisor Diversified Stock (FDTIX - Free Report) seeks capital growth and primarily invests its assets in common stocks. FDTIX has the flexibility to invest in domestic or foreign issuers, and in either growth stocks or value stocks, or both.
Daniel E. Kelley has been the lead manager of FDTIX since April 2017. Three top holdings for FDTIX are 9.4% in Microsoft, 5.6% in Nvidia and 5.4% in Alphabet.
FDTIX’s 3-year and 5-year annualized returns are 9.6% and 16.5%, respectively, and its net expense ratio is 0.59% compared to the category average of 0.84%. FDTIX has a Zacks Mutual Fund Rank #1.
Fidelity Stock Selector Small Cap (FDSCX - Free Report) invests primarily in common stocks of both domestic and foreign issuers. FDSCX invests both in growth and value stocks, and in securities of companies with small market capitalization (those with market capitalization similar to companies on the Russell 2000 or the S&P SmallCap 600 index). The fund uses fundamental analysis to select investments.
Jennifer Fo Cardillo has been the lead manager of FDSCX since November 2021. The three top holdings for FDSCX are 1.4% in Commercial Metals, 1.4% in Academy Sports & Outdoors and 1.3% in Northern Oil & Gas.
FDSCX’s 3-year and 5-year annualized returns are 6.9% and 14.2%, respectively, and its net expense ratio is 0.96% compared to the category average of 1.03%. FDSCX has a Zacks Mutual Fund Rank #1.
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4 Fidelity Mutual Funds to Buy as the Market Ebbs and Flows
Founded in 1946 and headquartered in Boston, MA, Fidelity Investments is one of the most trusted investment management companies in the world. It currently has more than 42 million individual investors and is one of the largest fund families in the United States.
Effective fund management and the ability to survive market volatility have resulted in Fidelity’s strong performance over the years. Lower expenses have also helped. Their zero-commission trading of stocks and ETFs is in line with the industry standard, but the brokerage platform stands out by offering zero-commission trading for over-the-counter stocks as well.
Fidelity reported that it had $4.4 trillion worth of total discretionary assets under management and $11.5 trillion of assets under administration as of Sep 30, 2023, and added 1.6 million new retail accounts over the past 12 months.
Here are a few other broad reasons why building positions in this Boston-based investment giant should be prudent at this juncture when the market is experiencing peaks and troughs based on the Fed’s interest rate outlook. Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive.
From the sensitive sectors, most investments are made in technology, one of the best-performing sectors from last year. The company has been delving into the new artificial intelligence (AI) boom by investing in and promoting AI firms like CoreWeave and Vast Data.
In the cyclical sectors, the fund family invests the maximum in the financial sector. In the defensives, the fund family's major focus is on the healthcare sector, which ended 2023 on a high and has started the new year with a bang.
Investing in these mutual funds may provide the much-required stability and growth potential in a market that is expected to remain volatile for a while. Hence, astute investors should consider such funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected four mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000, as well as carry a low expense ratio.
Select Pharmaceuticals Portfolio (FPHAX - Free Report) invests the majority of its net assets in companies engaged in the research, development, manufacture, sale, or distribution of pharmaceuticals and drugs. FPHAX invests primarily in common stocks, and its advisors use fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions for their investment purposes.
Karim Suwwan de Felipe has been the lead manager of FPHAX since July 2017. Three top holdings for FPHAX are 21.3% in Eli Lilly, 11.9% in Novo Nordisk and 9.5% in AstraZeneca.
FPHAX’s 3-year and 5-year annualized returns are 7.3% and 12.5%, respectively, and its net expense ratio is 0.73% compared to the category average of 1.03%. FPHAX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Capital Appreciation (FCAKX - Free Report) invests primarily in common stocks of both domestic and foreign issuers. FCAKX invests both in growth and value stocks, and its advisors use fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions for their investment purposes.
Jason Weiner has been the lead manager of FCAKX since October 2018. Three top holdings for FCAKX are 10.6% in Microsoft, 4.8% in Nvidia and 2.6% in Boston Scientific.
FCAKX’s 3-year and 5-year annualized returns are 8.1% and 17.1%, respectively, and its net expense ratio is 0.68% compared to the category average of 0.99%. FCAKX has a Zacks Mutual Fund Rank #1.
Fidelity Advisor Diversified Stock (FDTIX - Free Report) seeks capital growth and primarily invests its assets in common stocks. FDTIX has the flexibility to invest in domestic or foreign issuers, and in either growth stocks or value stocks, or both.
Daniel E. Kelley has been the lead manager of FDTIX since April 2017. Three top holdings for FDTIX are 9.4% in Microsoft, 5.6% in Nvidia and 5.4% in Alphabet.
FDTIX’s 3-year and 5-year annualized returns are 9.6% and 16.5%, respectively, and its net expense ratio is 0.59% compared to the category average of 0.84%. FDTIX has a Zacks Mutual Fund Rank #1.
Fidelity Stock Selector Small Cap (FDSCX - Free Report) invests primarily in common stocks of both domestic and foreign issuers. FDSCX invests both in growth and value stocks, and in securities of companies with small market capitalization (those with market capitalization similar to companies on the Russell 2000 or the S&P SmallCap 600 index). The fund uses fundamental analysis to select investments.
Jennifer Fo Cardillo has been the lead manager of FDSCX since November 2021. The three top holdings for FDSCX are 1.4% in Commercial Metals, 1.4% in Academy Sports & Outdoors and 1.3% in Northern Oil & Gas.
FDSCX’s 3-year and 5-year annualized returns are 6.9% and 14.2%, respectively, and its net expense ratio is 0.96% compared to the category average of 1.03%. FDSCX has a Zacks Mutual Fund Rank #1.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>