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Is Fidelity New Millennium (FMILX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the All Cap Growth category, but where should you start your research? Well, one fund that might be worth investigating is Fidelity New Millennium (FMILX - Free Report) . FMILX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FMILX is classified in the All Cap Growth segment by Zacks, an area full of possibilities. All Cap Growth funds have holdings across small, medium, and large-cap levels in order to increase diversification. As long as stocks demonstrate strong growth characteristics, these portfolios will invest in various equity securities regardless of company size.
History of Fund/Manager
Fidelity is responsible for FMILX, and the company is based out of Boston, MA. Fidelity New Millennium debuted in December of 1992. Since then, FMILX has accumulated assets of about $6.07 billion, according to the most recently available information. Daniel Sherwood is the fund's current manager and has held that role since October of 2022.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 17.95%, and is in the top 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 25.6%, 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 FMILX over the past three years is 12.82% compared to the category average of 12.68%. Looking at the past 5 years, the fund's standard deviation is 15.23% compared to the category average of 15.46%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.92, so it is likely going to be less volatile than the market at large. 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. FMILX has generated a positive alpha over the past five years of 4.42, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating 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 primarily on equities that are traded in the United States.
Currently, this mutual fund is holding 76.82% in stocks, and these companies have an average market capitalization of $566.69 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Industrial Cyclical
Turnover is 39%, which means this fund makes fewer trades than the average comparable fund.
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, FMILX is a no load fund. It has an expense ratio of 0.73% compared to the category average of 0.71%. Looking at the fund from a cost perspective, FMILX is actually more expensive than its peers.
While the minimum initial investment for the product is $0, investors should also note that 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
Overall, Fidelity New Millennium ( FMILX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Fidelity New Millennium ( FMILX ) looks like a good potential choice for investors right now.
Want even more information about FMILX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
View the Zacks #1 Rank List
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Is Fidelity New Millennium (FMILX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the All Cap Growth category, but where should you start your research? Well, one fund that might be worth investigating is Fidelity New Millennium (FMILX - Free Report) . FMILX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FMILX is classified in the All Cap Growth segment by Zacks, an area full of possibilities. All Cap Growth funds have holdings across small, medium, and large-cap levels in order to increase diversification. As long as stocks demonstrate strong growth characteristics, these portfolios will invest in various equity securities regardless of company size.
History of Fund/Manager
Fidelity is responsible for FMILX, and the company is based out of Boston, MA. Fidelity New Millennium debuted in December of 1992. Since then, FMILX has accumulated assets of about $6.07 billion, according to the most recently available information. Daniel Sherwood is the fund's current manager and has held that role since October of 2022.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 17.95%, and is in the top 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 25.6%, 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 FMILX over the past three years is 12.82% compared to the category average of 12.68%. Looking at the past 5 years, the fund's standard deviation is 15.23% compared to the category average of 15.46%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.92, so it is likely going to be less volatile than the market at large. 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. FMILX has generated a positive alpha over the past five years of 4.42, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating 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 primarily on equities that are traded in the United States.
Currently, this mutual fund is holding 76.82% in stocks, and these companies have an average market capitalization of $566.69 billion. The fund has the heaviest exposure to the following market sectors:
Turnover is 39%, which means this fund makes fewer trades than the average comparable fund.
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, FMILX is a no load fund. It has an expense ratio of 0.73% compared to the category average of 0.71%. Looking at the fund from a cost perspective, FMILX is actually more expensive than its peers.
While the minimum initial investment for the product is $0, investors should also note that 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
Overall, Fidelity New Millennium ( FMILX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Fidelity New Millennium ( FMILX ) looks like a good potential choice for investors right now.
Want even more information about FMILX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.