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Is Fidelity Series Growth Company (FCGSX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Large Cap Growth fund? Fidelity Series Growth Company (FCGSX - Free Report) is a potential starting point. FCGSX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FCGSX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
Fidelity is responsible for FCGSX, and the company is based out of Boston, MA. Fidelity Series Growth Company debuted in November of 2013. Since then, FCGSX has accumulated assets of about $21.03 billion, according to the most recently available information. Steven Wymer is the fund's current manager and has held that role since November of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FCGSX has a 5-year annualized total return of 20.43%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 34.89%, 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. The standard deviation of FCGSX over the past three years is 18.09% compared to the category average of 16.78%. Over the past 5 years, the standard deviation of the fund is 20.98% compared to the category average of 19.61%. 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 1.2, so it is likely going to be more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. FCGSX has generated a positive alpha over the past five years of 0.49, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
As of the last filing date, the mutual fund has 77.16% of its assets in stocks, which have an average market capitalization of $709.47 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
This fund's turnover is about 41%, so the fund managers are making fewer trades than comparable funds.
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, FCGSX is a no load fund. It has an expense ratio of 0.01% compared to the category average of 0.93%. So, FCGSX is actually cheaper than its peers from a cost perspective.
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 consideration. Returns would be less if those were included.
Bottom Line
Overall, Fidelity Series Growth Company ( FCGSX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Series Growth Company ( FCGSX ) looks like a good potential choice for investors right now.
Your research on the Large Cap Growth segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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 Series Growth Company (FCGSX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Large Cap Growth fund? Fidelity Series Growth Company (FCGSX - Free Report) is a potential starting point. FCGSX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FCGSX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
Fidelity is responsible for FCGSX, and the company is based out of Boston, MA. Fidelity Series Growth Company debuted in November of 2013. Since then, FCGSX has accumulated assets of about $21.03 billion, according to the most recently available information. Steven Wymer is the fund's current manager and has held that role since November of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FCGSX has a 5-year annualized total return of 20.43%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 34.89%, 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. The standard deviation of FCGSX over the past three years is 18.09% compared to the category average of 16.78%. Over the past 5 years, the standard deviation of the fund is 20.98% compared to the category average of 19.61%. 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 1.2, so it is likely going to be more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. FCGSX has generated a positive alpha over the past five years of 0.49, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
As of the last filing date, the mutual fund has 77.16% of its assets in stocks, which have an average market capitalization of $709.47 billion. The fund has the heaviest exposure to the following market sectors:
This fund's turnover is about 41%, so the fund managers are making fewer trades than comparable funds.
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, FCGSX is a no load fund. It has an expense ratio of 0.01% compared to the category average of 0.93%. So, FCGSX is actually cheaper than its peers from a cost perspective.
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 consideration. Returns would be less if those were included.
Bottom Line
Overall, Fidelity Series Growth Company ( FCGSX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Series Growth Company ( FCGSX ) looks like a good potential choice for investors right now.
Your research on the Large Cap Growth segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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.