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Fidelity Investments is one of the largest and oldest mutual fund companies in the world. It offers a variety of investment options, from sector-based funds to key actively managed funds. The company provides investment advice, discount brokerage services, retirement services, wealth management services, securities execution, and clearance and life insurance products.
At Fidelity, a large group of investment professionals carry out extensive and in-depth research to open up potential investment avenues worldwide for their investors. To top it, low expenses, effective fund management and the ability to survive market volatility have resulted in strong fund performance.
Fidelity’s Performance So Far
By the end of December 2019, Fidelity Investments had more than $8.3 trillion of assets under management. The initial investment of the majority of Fidelity mutual funds ranges from $0 to $2,500. As of Mar 31, 2020, out of the total number of funds under Fidelity, only 3.2% were load funds, while the remaining 96.8% were no load funds.
Further, Fidelity Advisor Growth Opportunities Fund Class M (FAGOX - Free Report) turned out to be one of the best-performing mutual funds from this family. The fund has posted solid gains in the year-to-date period. FAGOX, which invests a bulk of its assets in common stocks of companies with above-average growth potential, has returned 17.8% over the past three years.
Factors Supporting Gains
Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in technology. Among the cyclical sectors, the fund family invested the maximum in the financial services sector, while among the defensive sectors, it invested heavily in healthcare.
Technology Select Sector SPDR (XLK) has gained 11.7% over the past year and has consistently remained the best-performing among the 11 S&P 500 sectors.
4 Best Funds to Buy Now
Given the circumstances, we have highlighted four Fidelity mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from the above-mentioned factors. Moreover, these funds have encouraging one and three-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Medical Technology And Devices Portfolio (FSMEX - Free Report) fund invests a large portion of its assets in securities of companies engaged in the manufacturing and distribution of medical devices and equipment. The fund invests in both U.S. and non-U.S. stocks.
This Zacks sector – Health product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSMEX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.73%, which is below the category average of 1.24%. The fund has one and three-year returns of 7.5% and 16.2%, respectively.
Fidelity Select Software & IT Services Portfolio (FSCSX - Free Report) fund invests majority of its assets in companies whose primary operations are related to software or information-based services. It primarily focuses on acquiring common stocks of both domestic and foreign companies.
This Sector-Tech product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one and three-year benchmarks are 21.3% and 22.5%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund carries a Zacks Mutual Fund Rank #1 and has an annual expense ratio of 0.72%, below the category average of 1.29%.
Fidelity Equity-Income Fund (FEQIX - Free Report) seeks reasonable income and capital appreciation. FEQIX normally invests at least 80% of its assets in equity securities. The fund also spends on income-producing securities that lead to investments in large capital, value stocks. Moreover, it invests in domestic and foreign issuers.
This Zacks sector – Large Cap Value product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FEQIX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.60%, which is below the category average of 0.99%. The fund has one and three-year returns of 3.8% and 4.6%, respectively.
Fidelity Select Semiconductors (FSELX - Free Report) fund invests the bulk of its assets in common stocks of companies involved in the manufacture, design and sale of electronic equipment and components. FSELX seeks growth of capital. The fund invests in both U.S. companies and non-U.S. companies.
This Sector-Tech product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one and three-year benchmarks are 26.1% and 19.2%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund carries a Zacks Mutual Fund Rank #1 and has an annual expense ratio of 0.73%, below the category average of 1.29%.
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4 Fidelity Mutual Funds to Buy in April
Fidelity Investments is one of the largest and oldest mutual fund companies in the world. It offers a variety of investment options, from sector-based funds to key actively managed funds. The company provides investment advice, discount brokerage services, retirement services, wealth management services, securities execution, and clearance and life insurance products.
At Fidelity, a large group of investment professionals carry out extensive and in-depth research to open up potential investment avenues worldwide for their investors. To top it, low expenses, effective fund management and the ability to survive market volatility have resulted in strong fund performance.
Fidelity’s Performance So Far
By the end of December 2019, Fidelity Investments had more than $8.3 trillion of assets under management. The initial investment of the majority of Fidelity mutual funds ranges from $0 to $2,500. As of Mar 31, 2020, out of the total number of funds under Fidelity, only 3.2% were load funds, while the remaining 96.8% were no load funds.
Further, Fidelity Advisor Growth Opportunities Fund Class M (FAGOX - Free Report) turned out to be one of the best-performing mutual funds from this family. The fund has posted solid gains in the year-to-date period. FAGOX, which invests a bulk of its assets in common stocks of companies with above-average growth potential, has returned 17.8% over the past three years.
Factors Supporting Gains
Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in technology. Among the cyclical sectors, the fund family invested the maximum in the financial services sector, while among the defensive sectors, it invested heavily in healthcare.
Technology Select Sector SPDR (XLK) has gained 11.7% over the past year and has consistently remained the best-performing among the 11 S&P 500 sectors.
4 Best Funds to Buy Now
Given the circumstances, we have highlighted four Fidelity mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from the above-mentioned factors. Moreover, these funds have encouraging one and three-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Medical Technology And Devices Portfolio (FSMEX - Free Report) fund invests a large portion of its assets in securities of companies engaged in the manufacturing and distribution of medical devices and equipment. The fund invests in both U.S. and non-U.S. stocks.
This Zacks sector – Health product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSMEX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.73%, which is below the category average of 1.24%. The fund has one and three-year returns of 7.5% and 16.2%, respectively.
Fidelity Select Software & IT Services Portfolio (FSCSX - Free Report) fund invests majority of its assets in companies whose primary operations are related to software or information-based services. It primarily focuses on acquiring common stocks of both domestic and foreign companies.
This Sector-Tech product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one and three-year benchmarks are 21.3% and 22.5%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund carries a Zacks Mutual Fund Rank #1 and has an annual expense ratio of 0.72%, below the category average of 1.29%.
Fidelity Equity-Income Fund (FEQIX - Free Report) seeks reasonable income and capital appreciation. FEQIX normally invests at least 80% of its assets in equity securities. The fund also spends on income-producing securities that lead to investments in large capital, value stocks. Moreover, it invests in domestic and foreign issuers.
This Zacks sector – Large Cap Value product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FEQIX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.60%, which is below the category average of 0.99%. The fund has one and three-year returns of 3.8% and 4.6%, respectively.
Fidelity Select Semiconductors (FSELX - Free Report) fund invests the bulk of its assets in common stocks of companies involved in the manufacture, design and sale of electronic equipment and components. FSELX seeks growth of capital. The fund invests in both U.S. companies and non-U.S. companies.
This Sector-Tech product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one and three-year benchmarks are 26.1% and 19.2%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund carries a Zacks Mutual Fund Rank #1 and has an annual expense ratio of 0.73%, below the category average of 1.29%.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>