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Is Fidelity Select Consumer Finance (FSVLX) a Strong Mutual Fund Pick Right Now?
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Looking for a Sector - Finance fund? You may want to consider Fidelity Select Consumer Finance (FSVLX - Free Report) as a possible option. FSVLX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
FSVLX is classified in the Sector - Finance segment by Zacks, and this area is full of possibilities. The financial space is notoriously large, complex, and heavily-regulated, and Sector - Finance mutual funds give investors a stable, diversified approach to investing in this industry. These funds can include everything from banks and investment giants to exchanges and insurance companies, though investors should note that interest rates could have a big impact.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FSVLX. Fidelity Select Consumer Finance made its debut in December of 1985, and since then, FSVLX has accumulated about $151.03 million in assets, per the most up-to-date date available. The fund is currently managed by Chuck Culp who has been in charge of the fund since September of 2018.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 8.24%, and it sits 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 8.96%, which places it in the top third during this time-frame.
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 FSVLX over the past three years is 15.55% compared to the category average of 16.06%. Over the past 5 years, the standard deviation of the fund is 15.18% compared to the category average of 16.93%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In FSVLX's case, the fund lost 74.76% in the most recent bear market and underperformed its peer group by 12%. This means that the fund could possibly be a worse choice than its peers during a down market environment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FSVLX has a 5-year beta of 1.04, which means it is likely to be more 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. FSVLX's 5-year performance has produced a negative alpha of -0.83, 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, FSVLX is a no load fund. It has an expense ratio of 0.87% compared to the category average of 1.56%. So, FSVLX 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.
Bottom Line
Overall, Fidelity Select Consumer Finance ( FSVLX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
Don't stop here for your research on Sector - Finance funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FSVLX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is Fidelity Select Consumer Finance (FSVLX) a Strong Mutual Fund Pick Right Now?
Looking for a Sector - Finance fund? You may want to consider Fidelity Select Consumer Finance (FSVLX - Free Report) as a possible option. FSVLX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
FSVLX is classified in the Sector - Finance segment by Zacks, and this area is full of possibilities. The financial space is notoriously large, complex, and heavily-regulated, and Sector - Finance mutual funds give investors a stable, diversified approach to investing in this industry. These funds can include everything from banks and investment giants to exchanges and insurance companies, though investors should note that interest rates could have a big impact.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FSVLX. Fidelity Select Consumer Finance made its debut in December of 1985, and since then, FSVLX has accumulated about $151.03 million in assets, per the most up-to-date date available. The fund is currently managed by Chuck Culp who has been in charge of the fund since September of 2018.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 8.24%, and it sits 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 8.96%, which places it in the top third during this time-frame.
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 FSVLX over the past three years is 15.55% compared to the category average of 16.06%. Over the past 5 years, the standard deviation of the fund is 15.18% compared to the category average of 16.93%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In FSVLX's case, the fund lost 74.76% in the most recent bear market and underperformed its peer group by 12%. This means that the fund could possibly be a worse choice than its peers during a down market environment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FSVLX has a 5-year beta of 1.04, which means it is likely to be more 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. FSVLX's 5-year performance has produced a negative alpha of -0.83, 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, FSVLX is a no load fund. It has an expense ratio of 0.87% compared to the category average of 1.56%. So, FSVLX 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.
Bottom Line
Overall, Fidelity Select Consumer Finance ( FSVLX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
Don't stop here for your research on Sector - Finance funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FSVLX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.