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5 Best Fidelity Funds to Buy Ahead of Second-Half 2017
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Fidelity is expected to get more attention from investors as we move into the second half of the year since the fund family has launched new varieties of mutual funds. Moreover, the leading provider of actively managed funds will not leave any stone unturned to capitalize on its own survey which revealed that investors have more confidence in a professionally managed portfolio to attain financial goals.
The third largest fund family in terms of assets under management is successfully providing investment advice and wealth management services to its clients. Its low expense objective, effective fund management and the ability to survive market volatility have resulted in strong fund performance, which makes Fidelity mutual funds strong investment choices.
Key Highlights in Fidelity
Fidelity Investments launched several key mutual funds in the last few months in order to deliver better outcome for its investors. It has introduced two index funds, Fidelity International Sustainability Index Fund and Fidelity U.S. Sustainability Index Fund. Also, the company added a new fund to its Defined Maturity Funds (DMF) line-up — Fidelity Municipal Income 2025 Fund (FIMSX). Further, to simplify the required minimum distribution (RMD) process for baby boomers, the company launched the Fidelity Simplicity RMD Funds.
In its recent survey, Fidelity found out that around 89% of total fund investors believe that using managed account will help meet their investment objectives effectively. Additionally, out of the total fund investors already 68% of them keep their assets in a managed account. Millennials, Gen xers and baby boomers respectively hold 64%, 62% and 77% of their invested assets in a managed account.
In the first quarter of 2017, Fidelity Investments had around $1.6 trillion of assets under management. The initial investment of the majority of the Fidelity mutual funds ranges from $0 to $2,500. As of Mar 31, 2017, out of the total number of funds under Fidelity, only 4.3% were load funds, while 95.7% were no load.
Additionally, in Kiplinger’s Personal Finance’s no-load fund list, four of 25 funds are from Fidelity. In the U.S. Lipper Fund Awards 2017, 11 Fidelity mutual funds received 14 awards. Out of the 11 Fidelity funds, five U.S. and non-U.S. equity funds received awards. Three sector funds, one bond fund and one high income fund also secured awards.
What Boosted Fidelity Fund’s Performance?
Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments are made in technology. Among the cyclical sectors, the fund family invests the maximum in the financial sector, while among defensive sectors it invests heavily in healthcare.
Technology Select Sector SPDR (XLK) has climbed 15% so far this year and is the biggest gainer among the S&P 500 sectors. Also, the technology mutual fund has registered year-to-date (YTD) returns of 20.5%, according to Morningstar. Also, financial and healthcare mutual funds have registered positive YTD returns of 4.7% and 17.1%, respectively.
Buy These 5 Strong Buy Fidelity Mutual Funds
Here, we have selected five Fidelity mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) and are expected to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
These funds have encouraging YTD and three months returns, and its minimum initial investment is within $5000. Also, these funds have low expense ratios.
Fidelity Select Semiconductors (FSELX - Free Report) invests a lion’s share of its assets in common stocks of companies whose primary operations are related to electronic components, equipment vendors, electronic component manufacturers, electronic component distributors, electronic instruments and electronic systems vendors. Investments are made in both domestic and foreign companies.
FSELX has an annual expense ratio of 0.75%, which is below the category average of 1.45%. The fund has YTD and three months returns of 13.4% and 4%, respectively.
Fidelity Select Chemicals Portfolio (FSCHX - Free Report) invests heavily in securities of companies, which are involved in the research, development, manufacture and marketing of products or services connected to the chemical process industries. It is a non-diversified fund.
FSCHX has an annual expense ratio of 0.79%, which is below the category average of 1.45%. The fund has YTD and three months returns of 12.2% and 0.1%, respectively.
Fidelity Growth Company (FDGRX - Free Report) invests primarily in common stocks. FDGRX invests in companies that have above-average growth potential. The fund invests in both domestic and foreign issuers. The fund seeks growth of capital.
FDGRX has an annual expense ratio of 0.77%, which is below the category average of 1.14%. The fund has YTD and three months returns of 20.3% and 8.7%, respectively.
Fidelity 500 Index Investor invests a bulk of its assets in common stocks of companies listed under the S&P 500 Index. FUSEX seeks to maximize income.
FUSEX has an annual expense ratio of 0.09%, which is below the category average of 0.96%. The fund has YTD and three months returns of 9.9% and 3.2%, respectively.
Fidelity Trend (FTRNX - Free Report) invests a major portion of its assets in common stocks of companies, which are expected to have above-average growth potential. In order to choose investments, the fund analyses the industry position and financial condition as well as economic and market conditions of each stocks.
FTRNX has an annual expense ratio of 0.73%, which is below the category average of 1.14%. The fund has YTD and three months returns of 14.7% and 5.5%, respectively.
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5 Best Fidelity Funds to Buy Ahead of Second-Half 2017
Fidelity is expected to get more attention from investors as we move into the second half of the year since the fund family has launched new varieties of mutual funds. Moreover, the leading provider of actively managed funds will not leave any stone unturned to capitalize on its own survey which revealed that investors have more confidence in a professionally managed portfolio to attain financial goals.
The third largest fund family in terms of assets under management is successfully providing investment advice and wealth management services to its clients. Its low expense objective, effective fund management and the ability to survive market volatility have resulted in strong fund performance, which makes Fidelity mutual funds strong investment choices.
Key Highlights in Fidelity
Fidelity Investments launched several key mutual funds in the last few months in order to deliver better outcome for its investors. It has introduced two index funds, Fidelity International Sustainability Index Fund and Fidelity U.S. Sustainability Index Fund. Also, the company added a new fund to its Defined Maturity Funds (DMF) line-up — Fidelity Municipal Income 2025 Fund (FIMSX). Further, to simplify the required minimum distribution (RMD) process for baby boomers, the company launched the Fidelity Simplicity RMD Funds.
In its recent survey, Fidelity found out that around 89% of total fund investors believe that using managed account will help meet their investment objectives effectively. Additionally, out of the total fund investors already 68% of them keep their assets in a managed account. Millennials, Gen xers and baby boomers respectively hold 64%, 62% and 77% of their invested assets in a managed account.
In the first quarter of 2017, Fidelity Investments had around $1.6 trillion of assets under management. The initial investment of the majority of the Fidelity mutual funds ranges from $0 to $2,500. As of Mar 31, 2017, out of the total number of funds under Fidelity, only 4.3% were load funds, while 95.7% were no load.
Additionally, in Kiplinger’s Personal Finance’s no-load fund list, four of 25 funds are from Fidelity. In the U.S. Lipper Fund Awards 2017, 11 Fidelity mutual funds received 14 awards. Out of the 11 Fidelity funds, five U.S. and non-U.S. equity funds received awards. Three sector funds, one bond fund and one high income fund also secured awards.
What Boosted Fidelity Fund’s Performance?
Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments are made in technology. Among the cyclical sectors, the fund family invests the maximum in the financial sector, while among defensive sectors it invests heavily in healthcare.
Technology Select Sector SPDR (XLK) has climbed 15% so far this year and is the biggest gainer among the S&P 500 sectors. Also, the technology mutual fund has registered year-to-date (YTD) returns of 20.5%, according to Morningstar. Also, financial and healthcare mutual funds have registered positive YTD returns of 4.7% and 17.1%, respectively.
Buy These 5 Strong Buy Fidelity Mutual Funds
Here, we have selected five Fidelity mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) and are expected to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
These funds have encouraging YTD and three months returns, and its minimum initial investment is within $5000. Also, these funds have low expense ratios.
Fidelity Select Semiconductors (FSELX - Free Report) invests a lion’s share of its assets in common stocks of companies whose primary operations are related to electronic components, equipment vendors, electronic component manufacturers, electronic component distributors, electronic instruments and electronic systems vendors. Investments are made in both domestic and foreign companies.
FSELX has an annual expense ratio of 0.75%, which is below the category average of 1.45%. The fund has YTD and three months returns of 13.4% and 4%, respectively.
Fidelity Select Chemicals Portfolio (FSCHX - Free Report) invests heavily in securities of companies, which are involved in the research, development, manufacture and marketing of products or services connected to the chemical process industries. It is a non-diversified fund.
FSCHX has an annual expense ratio of 0.79%, which is below the category average of 1.45%. The fund has YTD and three months returns of 12.2% and 0.1%, respectively.
Fidelity Growth Company (FDGRX - Free Report) invests primarily in common stocks. FDGRX invests in companies that have above-average growth potential. The fund invests in both domestic and foreign issuers. The fund seeks growth of capital.
FDGRX has an annual expense ratio of 0.77%, which is below the category average of 1.14%. The fund has YTD and three months returns of 20.3% and 8.7%, respectively.
Fidelity 500 Index Investor invests a bulk of its assets in common stocks of companies listed under the S&P 500 Index. FUSEX seeks to maximize income.
FUSEX has an annual expense ratio of 0.09%, which is below the category average of 0.96%. The fund has YTD and three months returns of 9.9% and 3.2%, respectively.
Fidelity Trend (FTRNX - Free Report) invests a major portion of its assets in common stocks of companies, which are expected to have above-average growth potential. In order to choose investments, the fund analyses the industry position and financial condition as well as economic and market conditions of each stocks.
FTRNX has an annual expense ratio of 0.73%, which is below the category average of 1.14%. The fund has YTD and three months returns of 14.7% and 5.5%, respectively.
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 >>