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The Department of Labor data released on Wednesday stated thatthe Producer Price Index (PPI) rose 0.2% inNovember, while October saw a 0.1% increase and September experienced a 0.6% rise. On a year-over-year basis, headline PPI advanced 3.0% in November.
The Core PPI (excluding volatile food and energy items) showed a 0.2% increase during November after October's 0.7% growth. Year over year, core PPI increased 3.5% in November, its highest annual rise since March.
Due to the rising PPI report, investors broadly expect the Federal Reserve to keep interest rates steady in the near term, with policy rates likely on hold through the first half of the year. At the same time, market participants predict that the central bank will perform multiple rate reductions that will occur later in the year. Market interest rates remain stable, which enables consumers to maintain their financial stability and consumer confidence.The prospect of lower borrowing expenses will motivate people to buy discretionary products like cars, travel packages and leisure activities.
This economic backdrop, marked by signs of easing monetary policy, makes consumer discretionary mutual funds an attractive investment option.
We have chosen two consumer discretionary mutual funds —Fidelity Select Consumer Discret Port ((FSCPX - Free Report) ) and Fidelity Select Retailing ((FSRPX - Free Report) )— that investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.
Fidelity Select Consumer Discret Port fund seeks capital appreciation. FSCPX invests most of its assets in common stocks of companies principally engaged in the manufacture and distribution of goods and services to consumers both domestically and internationally.
Jordan Michaels has been the lead manager of FSCPX since July 11, 2022. Most of the fund’s holdings were in companies like Amazon.com, Inc. (24%), Tesla, Inc. (13.4%) and Lowe's Companies, Inc. (4.3%) as of Aug. 31, 2025.
FSCPX’s 3-year and 5-year annualized returns are 23.5% and 7.9%, respectively. Its net expense ratio is 0.69%. FSCPX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Retailing fund seeks capital appreciation. FSRPX invests in common stocks of companies principally engaged in merchandising finished goods and services primarily to individual consumers.
Julia Pei has been the lead manager of FSRPX since Feb. 7, 2025. Most of the fund's holdings were in companies like Amazon.com, Inc. (24.9%), Walmart Inc. (8.2%) and Lowe's Companies, Inc. (7%) as of Aug. 31, 2025.
FSRPX's 3-year and 5-year annualized returns are 17.3% and 6.1%, respectively. Its net expense ratio is 0.64%. FSRPX has a Zacks Mutual Fund Rank #2.
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Buy 2 Consumer Discretionary Funds as PPI Climbs
The Department of Labor data released on Wednesday stated that the Producer Price Index (PPI) rose 0.2% in November, while October saw a 0.1% increase and September experienced a 0.6% rise. On a year-over-year basis, headline PPI advanced 3.0% in November.
The Core PPI (excluding volatile food and energy items) showed a 0.2% increase during November after October's 0.7% growth. Year over year, core PPI increased 3.5% in November, its highest annual rise since March.
Due to the rising PPI report, investors broadly expect the Federal Reserve to keep interest rates steady in the near term, with policy rates likely on hold through the first half of the year. At the same time, market participants predict that the central bank will perform multiple rate reductions that will occur later in the year. Market interest rates remain stable, which enables consumers to maintain their financial stability and consumer confidence. The prospect of lower borrowing expenses will motivate people to buy discretionary products like cars, travel packages and leisure activities.
This economic backdrop, marked by signs of easing monetary policy, makes consumer discretionary mutual funds an attractive investment option.
We have chosen two consumer discretionary mutual funds —Fidelity Select Consumer Discret Port ((FSCPX - Free Report) ) and Fidelity Select Retailing ((FSRPX - Free Report) ) — that investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.
Fidelity Select Consumer Discret Port fund seeks capital appreciation. FSCPX invests most of its assets in common stocks of companies principally engaged in the manufacture and distribution of goods and services to consumers both domestically and internationally.
Jordan Michaels has been the lead manager of FSCPX since July 11, 2022. Most of the fund’s holdings were in companies like Amazon.com, Inc. (24%), Tesla, Inc. (13.4%) and Lowe's Companies, Inc. (4.3%) as of Aug. 31, 2025.
FSCPX’s 3-year and 5-year annualized returns are 23.5% and 7.9%, respectively. Its net expense ratio is 0.69%. FSCPX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Retailing fund seeks capital appreciation. FSRPX invests in common stocks of companies principally engaged in merchandising finished goods and services primarily to individual consumers.
Julia Pei has been the lead manager of FSRPX since Feb. 7, 2025. Most of the fund's holdings were in companies like Amazon.com, Inc. (24.9%), Walmart Inc. (8.2%) and Lowe's Companies, Inc. (7%) as of Aug. 31, 2025.
FSRPX's 3-year and 5-year annualized returns are 17.3% and 6.1%, respectively. Its net expense ratio is 0.64%. FSRPX has a Zacks Mutual Fund Rank #2.
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 >>