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

Objective

Zacks categorizes FSPHX as Sector - Health, a segment packed with options. Sector - Health mutual funds offer investors a focus on the healthcare industry, one of the largest sectors in the American economy. These funds can include everything from pharmaceutical companies to medical device manufacturers and for-profit hospitals.

History of Fund/Manager

FSPHX finds itself in the Fidelity family, based out of Boston, MA. Fidelity Select Health Care debuted in July of 1981. Since then, FSPHX has accumulated assets of about $6.28 billion, according to the most recently available information. The fund's current manager, Edward Yoon, has been in charge of the fund since October of 2008.

Performance

Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 3.6%, and it sits in the middle 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 6.82%, which places it in the middle 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 15.99%, the standard deviation of FSPHX over the past three years is 14.26%. Looking at the past 5 years, the fund's standard deviation is 15.67% compared to the category average of 16.78%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.73, the fund is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. FSPHX's 5-year performance has produced a negative alpha of -7.01, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FSPHX is a no load fund and it has an expense ratio of 0.62%.

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

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 - Health category.

For additional information on this product, or to compare it to other mutual funds in the Sector - Health, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.