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Is Fidelity Stock Selector Allocation Cap (FDSSX) a Strong Mutual Fund Pick Right Now?
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Any investors hoping to find a Mutual Fund Equity Report fund could think about starting with Fidelity Stock Selector Allocation Cap (FDSSX - Free Report) . FDSSX carries 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 based in Boston, MA, and is the manager of FDSSX. Since Fidelity Stock Selector Allocation Cap made its debut in September of 1990, FDSSX has garnered more than $1.33 billion in assets. The fund is currently managed by Geoffrey Stein who has been in charge of the fund since November of 2009.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FDSSX has a 5-year annualized total return of 9.82% and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 10.6%, 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. Compared to the category average of 17.59%, the standard deviation of FDSSX over the past three years is 21.41%. Over the past 5 years, the standard deviation of the fund is 19.3% compared to the category average of 15.46%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.03, the fund is likely to be as volatile as 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 negative alpha of -1.23, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
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.
As of the last filing date, the mutual fund has 99.55% of its assets in stocks and it has a negligible amount of assets in foreign securities. Turnover is about 13%, so those in charge of the fund make fewer trades than the average comparable fund.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FDSSX is a no load fund. It has an expense ratio of 0.66% compared to the category average of 0.99%. Looking at the fund from a cost perspective, FDSSX 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 Stock Selector Allocation Cap ( FDSSX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Fidelity Stock Selector Allocation Cap ( FDSSX ) looks like a great potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is Fidelity Stock Selector Allocation Cap (FDSSX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Mutual Fund Equity Report fund could think about starting with Fidelity Stock Selector Allocation Cap (FDSSX - Free Report) . FDSSX carries 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 based in Boston, MA, and is the manager of FDSSX. Since Fidelity Stock Selector Allocation Cap made its debut in September of 1990, FDSSX has garnered more than $1.33 billion in assets. The fund is currently managed by Geoffrey Stein who has been in charge of the fund since November of 2009.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FDSSX has a 5-year annualized total return of 9.82% and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 10.6%, 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. Compared to the category average of 17.59%, the standard deviation of FDSSX over the past three years is 21.41%. Over the past 5 years, the standard deviation of the fund is 19.3% compared to the category average of 15.46%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.03, the fund is likely to be as volatile as 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 negative alpha of -1.23, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
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.
As of the last filing date, the mutual fund has 99.55% of its assets in stocks and it has a negligible amount of assets in foreign securities. Turnover is about 13%, so those in charge of the fund make fewer trades than the average comparable fund.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FDSSX is a no load fund. It has an expense ratio of 0.66% compared to the category average of 0.99%. Looking at the fund from a cost perspective, FDSSX 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 Stock Selector Allocation Cap ( FDSSX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Fidelity Stock Selector Allocation Cap ( FDSSX ) looks like a great potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.