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Is Fidelity Growth Strategies Fund (FDEGX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the All Cap Growth fund category, Fidelity Growth Strategies Fund (FDEGX - Free Report) could be a potential option. FDEGX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
Tickers is classified in the All Cap Growth segment by Zacks, an area full of possibilities. All Cap Growth funds have holdings across small, medium, and large-cap levels in order to increase diversification. As long as stocks demonstrate strong growth characteristics, these portfolios will invest in various equity securities regardless of company size.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FDEGX. Since Fidelity Growth Strategies Fund made its debut in December of 1990, FDEGX has garnered more than $3.37 billion in assets. Shilpa Mehra is the fund's current manager and has held that role since May of 2024.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 12.91%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 9.97%, which places it in the top 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, FDEGX's standard deviation comes in at 21.98%, compared to the category average of 17.8%. Looking at the past 5 years, the fund's standard deviation is 22.21% compared to the category average of 19.23%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.13, which means it is hypothetically more volatile than the market at large. 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. FDEGX's 5-year performance has produced a negative alpha of -4.43, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FDEGX is a no load fund. It has an expense ratio of 0.77% compared to the category average of 1%. So, FDEGX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Fidelity Growth Strategies Fund ( FDEGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Growth Strategies Fund ( FDEGX ) looks like a good potential choice for investors right now.
For additional information on the All Cap Growth 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 FDEGX 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 Growth Strategies Fund (FDEGX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the All Cap Growth fund category, Fidelity Growth Strategies Fund (FDEGX - Free Report) could be a potential option. FDEGX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
Tickers is classified in the All Cap Growth segment by Zacks, an area full of possibilities. All Cap Growth funds have holdings across small, medium, and large-cap levels in order to increase diversification. As long as stocks demonstrate strong growth characteristics, these portfolios will invest in various equity securities regardless of company size.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FDEGX. Since Fidelity Growth Strategies Fund made its debut in December of 1990, FDEGX has garnered more than $3.37 billion in assets. Shilpa Mehra is the fund's current manager and has held that role since May of 2024.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 12.91%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 9.97%, which places it in the top 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, FDEGX's standard deviation comes in at 21.98%, compared to the category average of 17.8%. Looking at the past 5 years, the fund's standard deviation is 22.21% compared to the category average of 19.23%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.13, which means it is hypothetically more volatile than the market at large. 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. FDEGX's 5-year performance has produced a negative alpha of -4.43, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FDEGX is a no load fund. It has an expense ratio of 0.77% compared to the category average of 1%. So, FDEGX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Fidelity Growth Strategies Fund ( FDEGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Growth Strategies Fund ( FDEGX ) looks like a good potential choice for investors right now.
For additional information on the All Cap Growth 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 FDEGX 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.