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Is Fidelity Contrafund K (FCNKX) a Strong Mutual Fund Pick Right Now?
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Any investors hoping to find a Large Cap Growth fund could think about starting with Fidelity Contrafund K (FCNKX - Free Report) . FCNKX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify FCNKX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FCNKX. Fidelity Contrafund K made its debut in May of 2008, and since then, FCNKX has accumulated about $18.40 billion in assets, per the most up-to-date date available. The fund is currently managed by Will Danoff who has been in charge of the fund since May of 2008.
Performance
Of course, investors look for strong performance in funds. FCNKX has a 5-year annualized total return of 9.08% and is in the top 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 9.8%, 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. Compared to the category average of 12.21%, the standard deviation of FCNKX over the past three years is 15.71%. Over the past 5 years, the standard deviation of the fund is 13.89% compared to the category average of 11.83%. This makes the fund more 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.
Investors should note that the fund has a 5-year beta of 0.95, so it is likely going to be less 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. FCNKX's 5-year performance has produced a positive alpha of 2.57, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining 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.
The mutual fund currently has 99.61% of its holdings in stocks, with an average market capitalization of $342.50 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
Turnover is 26%, which means, on average, the fund makes fewer trades than its comparable peers.
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, FCNKX is a no load fund. It has an expense ratio of 0.76% compared to the category average of 1.06%. So, FCNKX 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 Contrafund K ( FCNKX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Contrafund K ( FCNKX ) looks like a somewhat average choice for investors right now.
For additional information on the Large Cap Growth area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into FCNKX too 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.
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Is Fidelity Contrafund K (FCNKX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Large Cap Growth fund could think about starting with Fidelity Contrafund K (FCNKX - Free Report) . FCNKX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify FCNKX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FCNKX. Fidelity Contrafund K made its debut in May of 2008, and since then, FCNKX has accumulated about $18.40 billion in assets, per the most up-to-date date available. The fund is currently managed by Will Danoff who has been in charge of the fund since May of 2008.
Performance
Of course, investors look for strong performance in funds. FCNKX has a 5-year annualized total return of 9.08% and is in the top 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 9.8%, 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. Compared to the category average of 12.21%, the standard deviation of FCNKX over the past three years is 15.71%. Over the past 5 years, the standard deviation of the fund is 13.89% compared to the category average of 11.83%. This makes the fund more 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.
Investors should note that the fund has a 5-year beta of 0.95, so it is likely going to be less 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. FCNKX's 5-year performance has produced a positive alpha of 2.57, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining 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.
The mutual fund currently has 99.61% of its holdings in stocks, with an average market capitalization of $342.50 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Finance
Turnover is 26%, which means, on average, the fund makes fewer trades than its comparable peers.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, FCNKX is a no load fund. It has an expense ratio of 0.76% compared to the category average of 1.06%. So, FCNKX 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 Contrafund K ( FCNKX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Contrafund K ( FCNKX ) looks like a somewhat average choice for investors right now.
For additional information on the Large Cap Growth area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into FCNKX too 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.