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On the lookout for a Government Mortgage - Intermediate fund? Starting with Fidelity GNMA Fund (FGMNX - Free Report) is one possibility. FGMNX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify FGMNX in the Government Mortgage - Intermediate category, an area full of potential choices. Government Mortgage - Intermediate funds focus on the mortgage-backed securities (MBS) market, which packages mortgages together and then sells off the pooled securities as a MBS. Honing in on MBS'that have at least three years to maturity but less than 10, this fund category presents a medium risk and yield profile.
History of Fund/Manager
Fidelity is responsible for FGMNX, and the company is based out of Boston, MA. Since Fidelity GNMA Fund made its debut in November of 1985, FGMNX has garnered more than $2.03 billion in assets. The fund's current manager, Franco Castagliuolo, has been in charge of the fund since December of 2009.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of -0.8%, and it sits in the middle 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 -3.74%, 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. Compared to the category average of 6.6%, the standard deviation of FGMNX over the past three years is 7.68%. The fund's standard deviation over the past 5 years is 6.11% compared to the category average of 5.58%. This makes the fund more volatile than its peers over the past half-decade.
With a beta of 1.03, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, FGMNX has a negative alpha of -0.83, which measures performance on a risk-adjusted basis.
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, FGMNX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 0.56%. Looking at the fund from a cost perspective, FGMNX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that 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 GNMA Fund ( FGMNX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on the Government Mortgage - Intermediate area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into FGMNX too 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 FGMNX a Strong Bond Fund Right Now?
On the lookout for a Government Mortgage - Intermediate fund? Starting with Fidelity GNMA Fund (FGMNX - Free Report) is one possibility. FGMNX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify FGMNX in the Government Mortgage - Intermediate category, an area full of potential choices. Government Mortgage - Intermediate funds focus on the mortgage-backed securities (MBS) market, which packages mortgages together and then sells off the pooled securities as a MBS. Honing in on MBS'that have at least three years to maturity but less than 10, this fund category presents a medium risk and yield profile.
History of Fund/Manager
Fidelity is responsible for FGMNX, and the company is based out of Boston, MA. Since Fidelity GNMA Fund made its debut in November of 1985, FGMNX has garnered more than $2.03 billion in assets. The fund's current manager, Franco Castagliuolo, has been in charge of the fund since December of 2009.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of -0.8%, and it sits in the middle 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 -3.74%, 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. Compared to the category average of 6.6%, the standard deviation of FGMNX over the past three years is 7.68%. The fund's standard deviation over the past 5 years is 6.11% compared to the category average of 5.58%. This makes the fund more volatile than its peers over the past half-decade.
With a beta of 1.03, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, FGMNX has a negative alpha of -0.83, which measures performance on a risk-adjusted basis.
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, FGMNX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 0.56%. Looking at the fund from a cost perspective, FGMNX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that 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 GNMA Fund ( FGMNX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on the Government Mortgage - Intermediate area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into FGMNX too 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.