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Is Fidelity Mid Cap Value Fund (FSMVX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Mid Cap Value fund? Starting with Fidelity Mid Cap Value Fund (FSMVX - Free Report) is one possibility. FSMVX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Mid Cap Value funds is an area filled with options, like FSMVX. Targeting medium-sized companies with a market cap between $2 billion and $10 billion, Mid Cap Value mutual funds more often than not choose stocks that hold solid value and income investment opportunities.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FSMVX. Fidelity Mid Cap Value Fund debuted in November of 2001. Since then, FSMVX has accumulated assets of about $1.01 billion, according to the most recently available information. Kevin Walenta is the fund's current manager and has held that role since June of 2017.
Performance
Of course, investors look for strong performance in funds. FSMVX has a 5-year annualized total return of 1.22% and it sits in the bottom 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 -0.98%, which places it in the bottom 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. Over the past three years, FSMVX's standard deviation comes in at 15.97%, compared to the category average of 10.88%. The standard deviation of the fund over the past 5 years is 14.46% compared to the category average of 10.67%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. In the most recent bear market, FSMVX lost 55.58% and underperformed its peer group by 4%. This could mean that the fund is a worse choice than comparable funds during a bear market.
Even still, the fund has a 5-year beta of 1.08, so investors should note that it is hypothetically more volatile than the market at large. 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. FSMVX's 5-year performance has produced a negative alpha of -7.77, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring 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 mostly on equities that are traded in the United States.
Currently, this mutual fund is holding 94.81% stock in stocks, with an average market capitalization of $18.28 billion. The fund has the heaviest exposure to the following market sectors:
Finance
Consumer Durables
Retail Trade
Turnover is about 80%, so those in charge of the fund make more traders than comparable funds in a given year.
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, FSMVX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 1.15%. So, FSMVX 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 Mid Cap Value Fund ( FSMVX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Fidelity Mid Cap Value Fund ( FSMVX ) looks like a great potential choice for investors right now.
Don't stop here for your research on Mid Cap Value 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 FSMVX 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 Mid Cap Value Fund (FSMVX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Mid Cap Value fund? Starting with Fidelity Mid Cap Value Fund (FSMVX - Free Report) is one possibility. FSMVX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Mid Cap Value funds is an area filled with options, like FSMVX. Targeting medium-sized companies with a market cap between $2 billion and $10 billion, Mid Cap Value mutual funds more often than not choose stocks that hold solid value and income investment opportunities.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FSMVX. Fidelity Mid Cap Value Fund debuted in November of 2001. Since then, FSMVX has accumulated assets of about $1.01 billion, according to the most recently available information. Kevin Walenta is the fund's current manager and has held that role since June of 2017.
Performance
Of course, investors look for strong performance in funds. FSMVX has a 5-year annualized total return of 1.22% and it sits in the bottom 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 -0.98%, which places it in the bottom 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. Over the past three years, FSMVX's standard deviation comes in at 15.97%, compared to the category average of 10.88%. The standard deviation of the fund over the past 5 years is 14.46% compared to the category average of 10.67%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. In the most recent bear market, FSMVX lost 55.58% and underperformed its peer group by 4%. This could mean that the fund is a worse choice than comparable funds during a bear market.
Even still, the fund has a 5-year beta of 1.08, so investors should note that it is hypothetically more volatile than the market at large. 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. FSMVX's 5-year performance has produced a negative alpha of -7.77, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring 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 mostly on equities that are traded in the United States.
Currently, this mutual fund is holding 94.81% stock in stocks, with an average market capitalization of $18.28 billion. The fund has the heaviest exposure to the following market sectors:
- Finance
- Consumer Durables
- Retail Trade
Turnover is about 80%, so those in charge of the fund make more traders than comparable funds in a given year.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, FSMVX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 1.15%. So, FSMVX 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 Mid Cap Value Fund ( FSMVX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Fidelity Mid Cap Value Fund ( FSMVX ) looks like a great potential choice for investors right now.
Don't stop here for your research on Mid Cap Value 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 FSMVX 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.