Fidelity Investments, the third-biggest fund family of the U.S. in terms of asset under management, is expected to get more love from investors in the coming months. Fidelity offers a variety of investment options, from sector-based funds to key actively managed funds. The mutual fund family has an impressive track of receiving the Lipper Fund Award in various investment styles and asset classes. Moreover, four Fidelity funds were named in the Kiplinger 25 list.
The company provides investment advice, discount brokerage services, retirement services and wealth management services to its clients. Lower expenses, effective fund management and the ability to survive market volatility have resulted in strong fund performance.
Fidelity Wins Multiple Fund Awards
In the U.S. Lipper Fund Awards 2017, 11 Fidelity mutual funds received 14 awards. Lipper categorized these funds under 3-, 5- and 10-year time periods. Out of the 11 Fidelity funds, five U.S. and non-U.S. equity funds received awards. Three sector funds were also awarded. Additionally, one bond fund and one high income fund also secured awards.
Additionally, in Kiplinger's Personal Finance's no-load fund list, four of 25 funds are from Fidelity. These are bond funds, the Fidelity Intermediate Municipal Income Fund No Load (MUTF:FLTMX) and the Fidelity New Markets Income Fund No Load (MUTF:FNMIX), and stock funds, the Fidelity New Millennium Fund No Load (MUTF:FMILX) and the Fidelity International Growth Fund No Load (MUTF:FIGFX).
Moreover, in Morningstar's Fund Managers of the Year 2016 award in four different asset classes, Ford O'Neil, Matthew Conti, Jeffrey Moore, CFA, and Michael Foggin, fund managers of the Fidelity Advisor Total Bond Fund No Load (MUTF:FTBFX), got the title of U.S. Fixed-Income Fund Manager of the Year. FTBFX significantly outpaced around 96% of its Morningstar Intermediate-Term peers.
What Boosted Fidelity Fund's Performance?
Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments are made in the technology sector. In the cyclical sectors, the fund family invests the maximum in the financial sector, which is expected to move up on the back of Trump's financial regulations and a higher rate environment. In sensitive sectors, the fund family's major focus is on healthcare sector.
The Technology Select Sector SPDR ETF (NYSEARCA:XLK) climbed 9.2% in the last three-year period and was the biggest gainer among the S&P 500 sectors. Also, the technology mutual fund posted a three-month positive return of 11.1%, according to Morningstar. Additionally, the healthcare and financial mutual fund posted three-month positive returns of 9.1% and 0.8%, respectively.
Buy These 5 Fidelity Mutual Funds
Fidelity Investments is one of the largest and oldest mutual fund companies in the world. It serves more than 25 million individual customers. As of June 30, 2016, it had more than $2.1 trillion assets under management. Fidelity Investments carries out operations in the U.S. through 10 regional offices and over 180 Investor Centers. It also has presence in eight other countries of North America, Europe, Asia and Australia.
We have selected five Fidelity mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy). 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.
These funds have encouraging three-month returns and one-year annualized returns, and its minimum initial investment is within $5000. Also, these funds have low expense ratios.
Fidelity Select Biotechnology Portfolio No Load (MUTF:FBIOX) invests the majority of its assets in common stocks of companies principally engaged in the research, development and distribution of various biotechnological products. It seeks growth of capital. This non-diversified fund invests in both U.S. and non-U.S. companies.
FBIOX's three-month returns and one-year annualized returns are 15.8% and 23.4%, respectively. Its annual expense ratio of 0.73% is lower than the category average of 1.32%.
Fidelity Select Software & IT Services Portfolio No Load (MUTF:FSCSX) invests the majority of its assets in companies whose primary operations are related to software or information-based services. It primarily focuses on acquiring common stocks of both domestic and foreign companies. The fund uses fundamental analysis to select companies for investment purposes.
FSCSX's three-month returns and one-year annualized returns are 11.2% and 24.3%, respectively. The fund's annual expense ratio of 0.76% is lower than the category average of 1.46%.
Fidelity Growth Company Fund No Load (MUTF:FDGRX) invests primarily in common stocks of companies that have above-average growth potential. The advisor uses fundamental analysis of factors, including each issuer's financial status and industry position, as well as market and economic conditions to select investments.
FDGRX's three-month returns and one-year annualized returns are 10.3% and 24%, respectively. Its annual expense ratio of 0.77% is lower than the category average of 1.15%.
Fidelity Contrafund Fund No Load (MUTF:FCNTX) seeks capital appreciation and invests in common stocks of companies that are believed to be underestimated in value. The fund focuses on acquiring both "growth" and "value" stocks of companies all over the world.
FCNTX's three-month returns and one-year annualized returns are 10.1% and 15.6%, respectively. The annual expense ratio of 0.68% is lower than the category average of 1.15%.
Fidelity OTC Portfolio No Load (MUTF:FOCPX) seeks capital growth on a long-term basis. The majority of its assets are invested in common stocks issued by companies regardless of their market capitalization. A maximum of 25% of its assets may be utilized to conduct short sales.
FOCPX's three-month returns and one-year annualized returns are 13% and 27.7%, respectively. Its annual expense ratio of 0.90% is lower than the category average of 1.15%.