If investors are looking at the Mutual Fund Equity Report fund category, Fidelity Growth Company K (FGCKX) could be a potential option. FGCKX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
FGCKX finds itself in the Fidelity family, based out of Boston, MA. Fidelity Growth Company K debuted in May of 2008. Since then, FGCKX has accumulated assets of about $8.05 billion, according to the most recently available information. Steven S. Wymer is the fund's current manager and has held that role since May of 2008.
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 15.43%, and it sits 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 7.58%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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 17.82%, the standard deviation of FGCKX over the past three years is 23.01%. Looking at the past 5 years, the fund's standard deviation is 24.27% compared to the category average of 18.35%. This makes the fund more volatile than its peers over the past half-decade.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FGCKX has a 5-year beta of 1.17, which means it is likely to be more volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. With a positive alpha of 3.23, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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 primarily on equities that are traded in the United States.
The mutual fund currently has 79.91% of its holdings in stocks and it has 3.66% of assets in foreign securities. The fund has the heaviest exposure to the following market sectors:
Turnover is 11%, which means this fund makes fewer trades than its comparable peers.
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, FGCKX is a no load fund. It has an expense ratio of 0.82% compared to the category average of 0.99%. Looking at the fund from a cost perspective, FGCKX is actually cheaper than its peers.
Investors should also note, that according to our data, the fund does not have any minimum investment requirements.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Overall, Fidelity Growth Company K ( FGCKX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Fidelity Growth Company K ( FGCKX ) looks like a good potential choice for investors right now.
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