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Is Fidelity Asset Manager 85% (FAMRX) a Strong Mutual Fund Pick Right Now?
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On the lookout for an Allocation Balanced fund? Starting with Fidelity Asset Manager 85% (FAMRX - Free Report) should not be a possibility at this time. FAMRX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Zacks' Allocation Balanced funds is an area filled with options, such as FAMRX. These funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. For investors, Allocation Balanced funds can provide an entry point into diversified mutual funds, and present core holding options for a portfolio of funds.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FAMRX. Fidelity Asset Manager 85% debuted in September of 1999. Since then, FAMRX has accumulated assets of about $229.44 million, according to the most recently available information. Avishek Hazrachoudhury is the fund's current manager and has held that role since April of 2018.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 10.85%, 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 3.42%, 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. Over the past three years, FAMRX's standard deviation comes in at 15.58%, compared to the category average of 14.69%. Looking at the past 5 years, the fund's standard deviation is 16.26% compared to the category average of 15.56%. This makes the fund more 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. FAMRX has a 5-year beta of 0.88, which means it is likely to be less volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. FAMRX's 5-year performance has produced a negative alpha of -3.03, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FAMRX is a no load fund. It has an expense ratio of 0.67% compared to the category average of 0.93%. From a cost perspective, FAMRX 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 Asset Manager 85% ( FAMRX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
For additional information on the Allocation Balanced 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 FAMRX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is Fidelity Asset Manager 85% (FAMRX) a Strong Mutual Fund Pick Right Now?
On the lookout for an Allocation Balanced fund? Starting with Fidelity Asset Manager 85% (FAMRX - Free Report) should not be a possibility at this time. FAMRX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Zacks' Allocation Balanced funds is an area filled with options, such as FAMRX. These funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. For investors, Allocation Balanced funds can provide an entry point into diversified mutual funds, and present core holding options for a portfolio of funds.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FAMRX. Fidelity Asset Manager 85% debuted in September of 1999. Since then, FAMRX has accumulated assets of about $229.44 million, according to the most recently available information. Avishek Hazrachoudhury is the fund's current manager and has held that role since April of 2018.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 10.85%, 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 3.42%, 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. Over the past three years, FAMRX's standard deviation comes in at 15.58%, compared to the category average of 14.69%. Looking at the past 5 years, the fund's standard deviation is 16.26% compared to the category average of 15.56%. This makes the fund more 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. FAMRX has a 5-year beta of 0.88, which means it is likely to be less volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. FAMRX's 5-year performance has produced a negative alpha of -3.03, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FAMRX is a no load fund. It has an expense ratio of 0.67% compared to the category average of 0.93%. From a cost perspective, FAMRX 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 Asset Manager 85% ( FAMRX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
For additional information on the Allocation Balanced 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 FAMRX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.