Fidelity Investments is considered one of the leaders in the financial services industry with a presence in eight countries across North America, Europe, Asia and Australia, and more than 40,000 associates. The company carries out operations in the United States through 12 regional offices and more than 190 Investor Centers.
Fidelity offers investment advice, discount brokerage services, retirement services, wealth management services, securities execution, and clearance and life insurance products to its clients. It serves more than 32 million individual investors.
At Fidelity, a large group of investment professionals carry out extensive and in-depth research to guide investors on potential investment avenues worldwide. Fidelity had total assets of about $8.8 trillion under management (as of Sep 30, 2020). The company manages over 570 mutual funds across a wide range of categories, including both domestic as well as foreign funds, and equity and fixed income funds.
Fidelity’s Performance in 2020
Fidelity Advisor Series Growth Opportunities Fund FAOFX turned up as one of the best-performing mutual funds from the Fidelity family. The fund 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 added 63.1% over the past year.
Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in the technology sector. 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 37.4% over the past one year and turned up as the best-performing sector among the 11 S&P 500 sectors.
Meanwhile, Fidelity was voted the most trusted wealth management company last year. The fund house left its peers behind and ranked first under several parameters such as protecting privacy and security, quality of products and services, customer service, as well as customer treatment.
4 Best Funds to Buy Now
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 such 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 Computers Portfolio FDCPX aims for capital appreciation. The fund invests the majority of its assets in securities of companies primarily engaged in research, design, development, manufacture or distribution of products and services related to currently available or experimental hardware technology in the computer industry. The non-diversified fund invests in both U.S. and non-U.S. issuers.
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.
FDCPX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.76%. The fund has one and three-year returns of 40.3% and 19.8%, respectively.
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. It primarily invests in common stocks of companies. The non-diversified fun invests in securities of both U.S. and non-U.S. issuers.
This Sector - Other 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 56.6% and 18.3%, 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 #2 and has an annual expense ratio of 1.00%.
Fidelity Advisor Small Cap Value Fund Class M FCVTX seeks appreciation of capital and invests primarily in common stocks. The fund invests the lion’s share of its assets in securities of companies with small market capitalizations. Moreover, the fund invests in those companies that Fidelity Management & Research Company (FMR) believes are undervalued in terms of assets, sales, earnings, growth potential, or cash flow, or in relation to securities of other companies in the same industry.
This Zacks Small 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.
FCVTX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 1.46%. The fund has one and three-year returns of 10.6% and 4%, respectively.
Fidelity Select Gold Portfolio FSAGX seeks capital appreciation. The fund invests the majority of its assets in securities of companies engaged in exploration, mining, processing, or dealing in gold, and to a lesser degree, in silver, platinum, diamonds, or other precious metals and minerals. FSAGX is a non-diversified mutual fund.
This Zacks Sector-Precious Metal 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.
FSAGX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.79%. The fund has one and three-year returns of 33.4% and 14.3%, respectively.
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