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Is Fidelity Advisor Gold A (FGDAX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is Fidelity Advisor Gold A (FGDAX - Free Report) . FGDAX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Fidelity is responsible for FGDAX, and the company is based out of Boston, MA. The Fidelity Advisor Gold A made its debut in December of 2006 and FGDAX has managed to accumulate roughly $82.02 million in assets, as of the most recently available information. Steven Calhoun is the fund's current manager and has held that role since September of 2018.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 4.86%, and it sits in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of -5.3%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. The standard deviation of FGDAX over the past three years is 31.55% compared to the category average of 17.31%. The standard deviation of the fund over the past 5 years is 33.84% compared to the category average of 18.4%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.75, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a positive alpha of 0.54. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, FGDAX is a load fund. It has an expense ratio of 1.08% compared to the category average of 1.33%. So, FGDAX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, worse downside risk, and lower fees, Fidelity Advisor Gold A ( FGDAX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.
Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FGDAX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is Fidelity Advisor Gold A (FGDAX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is Fidelity Advisor Gold A (FGDAX - Free Report) . FGDAX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Fidelity is responsible for FGDAX, and the company is based out of Boston, MA. The Fidelity Advisor Gold A made its debut in December of 2006 and FGDAX has managed to accumulate roughly $82.02 million in assets, as of the most recently available information. Steven Calhoun is the fund's current manager and has held that role since September of 2018.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 4.86%, and it sits in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of -5.3%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. The standard deviation of FGDAX over the past three years is 31.55% compared to the category average of 17.31%. The standard deviation of the fund over the past 5 years is 33.84% compared to the category average of 18.4%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.75, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a positive alpha of 0.54. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, FGDAX is a load fund. It has an expense ratio of 1.08% compared to the category average of 1.33%. So, FGDAX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, worse downside risk, and lower fees, Fidelity Advisor Gold A ( FGDAX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.
Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FGDAX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.