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If you've been stuck searching for Mutual Fund Bond funds, consider Fidelity GNMA Fund (FGMNX - Free Report) as a possibility. FGMNX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FGMNX. Fidelity GNMA Fund made its debut in November of 1985, and since then, FGMNX has accumulated about $2.08 billion in assets, per the most up-to-date date available. The fund's current manager, Franco Castagliuolo, has been in charge of the fund since December of 2009.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of -0.97%, and it sits in the middle 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 -5.39%, which places it in the top 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. Compared to the category average of 5.37%, the standard deviation of FGMNX over the past three years is 6.31%. The standard deviation of the fund over the past 5 years is 5.24% compared to the category average of 4.84%. This makes the fund more volatile than its peers over the past half-decade.
This fund has a beta of 0.96, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, FGMNX has a negative alpha of -1.19, which measures performance on a risk-adjusted basis.
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, FGMNX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 0.77%. Looking at the fund from a cost perspective, FGMNX 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.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Fidelity GNMA Fund ( FGMNX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on the Mutual Fund Bond area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into FGMNX too 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 FGMNX a Strong Bond Fund Right Now?
If you've been stuck searching for Mutual Fund Bond funds, consider Fidelity GNMA Fund (FGMNX - Free Report) as a possibility. FGMNX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FGMNX. Fidelity GNMA Fund made its debut in November of 1985, and since then, FGMNX has accumulated about $2.08 billion in assets, per the most up-to-date date available. The fund's current manager, Franco Castagliuolo, has been in charge of the fund since December of 2009.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of -0.97%, and it sits in the middle 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 -5.39%, which places it in the top 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. Compared to the category average of 5.37%, the standard deviation of FGMNX over the past three years is 6.31%. The standard deviation of the fund over the past 5 years is 5.24% compared to the category average of 4.84%. This makes the fund more volatile than its peers over the past half-decade.
This fund has a beta of 0.96, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, FGMNX has a negative alpha of -1.19, which measures performance on a risk-adjusted basis.
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, FGMNX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 0.77%. Looking at the fund from a cost perspective, FGMNX 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.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Fidelity GNMA Fund ( FGMNX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on the Mutual Fund Bond area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into FGMNX too 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.