We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Fidelity Mutual Funds to Buy as Volatility Continues
Read MoreHide Full Article
Fidelity Investments, one of the largest asset managers in the world, was founded in 1946 and is currently headquartered in Boston, MA. Proven efficiency in fund management and the ability to survive market volatility have enhanced the company’s reputation over the years.
Lower fees have also been a selling point. 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. All Fidelity mutual funds trade without fees as long as one owns the funds for at least 60 days. Another stand-out feature of the company is that it does not receive payment from market-makers for order flow of stock and ETF transactions.
Fidelity reported that it had $4.9 trillion worth of total discretionary assets under management and $12.6 trillion of assets under administration as of Dec 31, 2023. Also, it currently has nearly 50 million individual investors in its coffers.
Here are a few other broad reasons why investing 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 since the beginning of 2023. The company has also been diving deep 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.
Fidelity 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 June 2017. Three top holdings for FPHAX are 24.1% in Eli Lilly, 14.8% in Novo Nordisk and 9.4% in AstraZeneca.
FPHAX’s 3-year and 5-year annualized returns are 11.7% and 13.5%, respectively, and its net expense ratio is 0.73% compared to the category average of 1.12%. 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 (FDCAX - Free Report) invests primarily in common stocks of both domestic and foreign issuers. FDCAX 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 FDCAX since September 2018. Three top holdings for FDCAX are 10.6% in Microsoft, 4.8% in Nvidia and 2.6% in Boston Scientific.
FDCAX’s 3-year and 5-year annualized returns are 10.7% and 16.9%, respectively, and its net expense ratio is 0.64%. FDCAX has a Zacks Mutual Fund Rank #1.
Fidelity Magellan Fund (FMAGX - Free Report) invests in common stocks of domestic and foreign companies. It invests in growth stocks, value stocks, or both. To arrive at their investment decision, FMGAX advisors use fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions.
Sammy Simnegar has been the lead manager of FMAGX since February 2019. Three top holdings for FMAGX are 8.4% in Microsoft, 4.6% in Amazon and 4.3% in Nvidia.
FMAGX’s 3-year and 5-year annualized returns are 11.7% and 15.5%, respectively, and its net expense ratio is 0.45%. FMAGX 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).
Jennifer Fo Cardillo has been the lead manager of FDSCX since November 2021. The three top holdings for FDSCX are 1.5% in Fabrinet, 1.4% in Murphy USA and 1.3% in Northern Oil & Gas.
FDSCX’s 3-year and 5-year annualized returns are 4.9% and 11.9%, respectively, and its net expense ratio is 0.95%. FDSCX has a Zacks Mutual Fund Rank #2.
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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Fidelity Mutual Funds to Buy as Volatility Continues
Fidelity Investments, one of the largest asset managers in the world, was founded in 1946 and is currently headquartered in Boston, MA. Proven efficiency in fund management and the ability to survive market volatility have enhanced the company’s reputation over the years.
Lower fees have also been a selling point. 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. All Fidelity mutual funds trade without fees as long as one owns the funds for at least 60 days. Another stand-out feature of the company is that it does not receive payment from market-makers for order flow of stock and ETF transactions.
Fidelity reported that it had $4.9 trillion worth of total discretionary assets under management and $12.6 trillion of assets under administration as of Dec 31, 2023. Also, it currently has nearly 50 million individual investors in its coffers.
Here are a few other broad reasons why investing 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 since the beginning of 2023. The company has also been diving deep 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.
Fidelity 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 June 2017. Three top holdings for FPHAX are 24.1% in Eli Lilly, 14.8% in Novo Nordisk and 9.4% in AstraZeneca.
FPHAX’s 3-year and 5-year annualized returns are 11.7% and 13.5%, respectively, and its net expense ratio is 0.73% compared to the category average of 1.12%. 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 (FDCAX - Free Report) invests primarily in common stocks of both domestic and foreign issuers. FDCAX 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 FDCAX since September 2018. Three top holdings for FDCAX are 10.6% in Microsoft, 4.8% in Nvidia and 2.6% in Boston Scientific.
FDCAX’s 3-year and 5-year annualized returns are 10.7% and 16.9%, respectively, and its net expense ratio is 0.64%. FDCAX has a Zacks Mutual Fund Rank #1.
Fidelity Magellan Fund (FMAGX - Free Report) invests in common stocks of domestic and foreign companies. It invests in growth stocks, value stocks, or both. To arrive at their investment decision, FMGAX advisors use fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions.
Sammy Simnegar has been the lead manager of FMAGX since February 2019. Three top holdings for FMAGX are 8.4% in Microsoft, 4.6% in Amazon and 4.3% in Nvidia.
FMAGX’s 3-year and 5-year annualized returns are 11.7% and 15.5%, respectively, and its net expense ratio is 0.45%. FMAGX 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).
Jennifer Fo Cardillo has been the lead manager of FDSCX since November 2021. The three top holdings for FDSCX are 1.5% in Fabrinet, 1.4% in Murphy USA and 1.3% in Northern Oil & Gas.
FDSCX’s 3-year and 5-year annualized returns are 4.9% and 11.9%, respectively, and its net expense ratio is 0.95%. FDSCX has a Zacks Mutual Fund Rank #2.
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 >>