Fidelity Investments, one of the largest and oldest mutual fund companies in the world, carries out operations in the United States through 10 regional offices and over 197 Investor Centers. It also has a presence in eight other countries of North America, Europe, Asia and Australia.
Fidelity boasts huge mutual fund assets under management and a wide variety of funds, covering a wide spectrum of sectors. The company manages more than 504 mutual funds across a broad range of categories including domestic as well as foreign funds, and equity and fixed income funds.
Investors vest their faith in Fidelity's funds because they are known for their active management coupled with tactical investments. Obviously, not all the actively managed funds from the family always outperform their benchmark. However, the majority of funds from the category beat the broader markets, providing stiff competition to index funds as well as ETFs.
How Has Fidelity Performed So Far
By the end of July 2020, Fidelity Investments had more than $7.3 trillion of assets under management. It also had around $2.9 trillion of mutual fund assets. The initial investment of the majority of Fidelity mutual funds ranges from $0 to $2,500. As of Jul 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 Series Growth Opportunities Fund FAOFX 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. FAOFX, which invests a bulk of its assets in common stocks of companies with above-average growth potential, has returned 21.5% in the year-to-date period.
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 24.2% in the year to date period and has consistently remained the best-performing among the 11 S&P 500 sectors.
3 Best Funds to Buy Now
Given the circumstances, we have highlighted three 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 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 Select Automotive Portfolio FSAVX aims for capital growth. The fund invests the majority of its assets in securities of companies that manufacture and market automobiles, trucks, specialty vehicles and related parts. The fund primarily invests in common stocks of companies. The non-diversified fun invests in securities of both U.S. and non-U.S. issuers.
This Zacks sector – Large Cap Growth 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.
FSAVXhas a Zacks Mutual Fund Rank #1 and an annual expense ratio of 1.00%, which is below the category average of 1.27%. The fund has one and three-year returns of 13.6% and 8.3%, respectively.
Fidelity Blue Chip Growth Fund FBGRX seeks capital appreciation. The fund invests the majority of its assets in blue chip companies. The fund, which focus primarily on established and well-known companies, invests in securities of both U.S. and non-U.S. issuers.
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 32% and 22.3%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
This Zacks Mutual Fund Rank #2 fund has an annual expense ratio of 0.80%, below the category average of 1.05%.
Fidelity Select Semiconductors Portfolio FSELX 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. and non-U.S. companies.
This Zacks Sector-Tech 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.
FSELX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.72%, which is below the category average of 1.29%. The fund has one and three-year returns of 35% and 22.9%, respectively.
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 >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Get Your Free (FSELX): Fund Analysis Report
Get Your Free (FSAVX): Fund Analysis Report
Get Your Free (FBGRX): Fund Analysis Report
Get Your Free (FAOFX): Fund Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research