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 to its clients.
At Fidelity, a large group of investment professionals carry out extensive and in-depth research to provide potential investment avenues worldwide to 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 in 2019
By the end of November, Fidelity Investments had more than $8.2 trillion of assets under management. The initial investment of the majority of Fidelity mutual funds ranges from $0 to $2,500. As of Dec 30, 2019, 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) 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 28.3% 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 climbed 48.3% so far this year and is the best-performing sector so far this year 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 three-year and YTD returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their 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 International Capital Appreciation Fund FIVFX invests its assets heavily in securities of foreign issuers, primarily those from the emerging economies. FIVFX seeks to invest in common stocks and aims at maximizing long-term growth of capital by allocating investments across different nations and regions of the world.
This Sector - Non Us-Equity product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the three-year and YTD benchmarks are 15.4% and 28.5%, 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 1.06%, which is below the category average of 1.13%.
Fidelity Equity-Income Fund FEQIX 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 0.61%, which is below the category average of 1.01%. The fund has three-year and YTD returns of 9.6% and 24.2%, respectively.
Fidelity Select Medical Technology And Devices Portfolio FSMEX 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 1.26%. The fund has three-year and YTD returns of 23.7% and 26.5%, respectively.
Fidelity Advisor Stock Selector Small Cap Fund Class A FCDAX aims for capital growth. The fund invests the majority of its assets in securities of small-capitalization companies. These companies usually have market capitalization similar to those on the Russell 2000 Index or the S&P SmallCap 600 Index. The fund primarily invests in common stocks.
This Sector - Small Cap Blend product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the three-year and YTD benchmarks are 10% and 27.7%, 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 0.97%, below the category average of 1.13%.
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