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Is Fidelity Asset Manager 70% (FASGX) a Strong Mutual Fund Pick Right Now?

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If investors are looking at the Allocation Balanced fund category, Fidelity Asset Manager 70% (FASGX - Free Report) could be a potential option. FASGX possesses a Zacks Mutual Fund Rank of 2 (Buy), 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 FASGX. 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 responsible for FASGX, and the company is based out of Boston, MA. Fidelity Asset Manager 70% debuted in December of 1991. Since then, FASGX has accumulated assets of about $4.16 billion, according to the most recently available information. The fund's current manager, Avishek Hazrachoudhury, has been in charge of the fund since April of 2018.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 9.12%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 5.47%, which places it in the bottom 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. The standard deviation of FASGX over the past three years is 13.28% compared to the category average of 14.03%. The standard deviation of the fund over the past 5 years is 14.06% compared to the category average of 15.26%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.77, the fund 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. With a negative alpha of -3.98, 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, FASGX is a no load fund. It has an expense ratio of 0.64% compared to the category average of 0.74%. Looking at the fund from a cost perspective, FASGX 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 70% ( FASGX ) 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 great potential choice for investors right now.

Want even more information about FASGX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.


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