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There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that might be worth investigating is Fidelity Strategic Real Return (FSRRX - Free Report) . FSRRX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Fidelity is responsible for FSRRX, and the company is based out of Boston, MA. Fidelity Strategic Real Return debuted in September of 2005. Since then, FSRRX has accumulated assets of about $428.17 million, according to the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. FSRRX has a 5-year annualized total return of 5.52% and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 7.29%, which places it in the top third during this time-frame.
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. FSRRX's standard deviation over the past three years is 10.6% compared to the category average of 14.36%. The standard deviation of the fund over the past 5 years is 8.76% compared to the category average of 12.79%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of -0.18, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, FSRRX has a positive alpha of 4.67, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, FSRRX has 41.12% in high quality bonds rated at least 'AA' or higher, while its junk bond component-bonds rated 'BB' or below-is at 46.66%. This means that the fund has an average quality of A, and focuses on high quality securities.
Expenses
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, FSRRX is a no load fund. It has an expense ratio of 0.73% compared to the category average of 0.77%. From a cost perspective, FSRRX is actually cheaper than its peers.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Fidelity Strategic Real Return ( FSRRX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Strategic Real Return ( FSRRX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is FSRRX a Strong Bond Fund Right Now?
There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that might be worth investigating is Fidelity Strategic Real Return (FSRRX - Free Report) . FSRRX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Fidelity is responsible for FSRRX, and the company is based out of Boston, MA. Fidelity Strategic Real Return debuted in September of 2005. Since then, FSRRX has accumulated assets of about $428.17 million, according to the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. FSRRX has a 5-year annualized total return of 5.52% and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 7.29%, which places it in the top third during this time-frame.
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. FSRRX's standard deviation over the past three years is 10.6% compared to the category average of 14.36%. The standard deviation of the fund over the past 5 years is 8.76% compared to the category average of 12.79%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of -0.18, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, FSRRX has a positive alpha of 4.67, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, FSRRX has 41.12% in high quality bonds rated at least 'AA' or higher, while its junk bond component-bonds rated 'BB' or below-is at 46.66%. This means that the fund has an average quality of A, and focuses on high quality securities.
Expenses
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, FSRRX is a no load fund. It has an expense ratio of 0.73% compared to the category average of 0.77%. From a cost perspective, FSRRX is actually cheaper than its peers.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Fidelity Strategic Real Return ( FSRRX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Strategic Real Return ( FSRRX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.