Sector - Tech fund seekers should consider taking a look at Fidelity Select Technology (FSPTX Quick QuoteFSPTX - Free Report) . FSPTX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

We note that FSPTX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversified approach.

History of Fund/Manager

Fidelity is based in Boston, MA, and is the manager of FSPTX. Fidelity Select Technology made its debut in July of 1981, and since then, FSPTX has accumulated about $19.53 billion in assets, per the most up-to-date date available. The fund's current manager, Adam Benjamin, has been in charge of the fund since January of 2022.

Performance

Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 15.48%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 38.71%, 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. Compared to the category average of 21.21%, the standard deviation of FSPTX over the past three years is 20.37%. The fund's standard deviation over the past 5 years is 22.57% compared to the category average of 23.2%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.31, the fund is likely to be more volatile than the market average. 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. FSPTX's 5-year performance has produced a negative alpha of -1.2, 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, FSPTX is a no load fund and it has an expense ratio of 0.61%.

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 consideration. Returns would be less if those were included.

Bottom Line

This puts this fund from Fidelity in the top 20% of all mutual funds we have a rank on right now. As a result, this is likely an excellent choice for investors seeking an option in the Sector - Tech category.

This could just be the start of your research on FSPTX in the Sector - Tech category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.