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Is Fidelity Mid Cap Value Fund (FSMVX) a Strong Mutual Fund Pick Right Now?
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If you're looking for a Mid Cap Value fund category, then a potential option is Fidelity Mid Cap Value Fund (FSMVX - Free Report) . FSMVX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify FSMVX in the Mid Cap Value category, an area rife with potential choices. Mid Cap Value mutual funds aim to target medium-sized companies that possess strong value and income opportunities for investors. A mid-cap company usually holds a market capitalization of between $2 billion and $10 billion.
History of Fund/Manager
FSMVX finds itself in the Fidelity family, based out of Boston, MA. Fidelity Mid Cap Value Fund made its debut in November of 2001, and since then, FSMVX has accumulated about $1.18 billion in assets, per the most up-to-date date available. The fund's current manager, Neil Nabar, has been in charge of the fund since July of 2021.
Performance
Of course, investors look for strong performance in funds. FSMVX has a 5-year annualized total return of 10.84% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 12.59%, 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. FSMVX's standard deviation over the past three years is 21.33% compared to the category average of 15.02%. The standard deviation of the fund over the past 5 years is 23.19% compared to the category average of 16.34%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.14, the fund is likely to be more volatile than 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 -4.29, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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 principally on equities that are traded in the United States.
Right now, 85.82% of this mutual fund's holdings are stocks, which have an average market capitalization of $18.34 billion. The fund has the heaviest exposure to the following market sectors:
Finance
Industrial Cyclical
Turnover is about 70%, so those in charge of the fund make more trades per year than the comparable average.
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, FSMVX is a no load fund. It has an expense ratio of 0.89% compared to the category average of 0.96%. From a cost perspective, FSMVX is actually cheaper than its peers.
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, Fidelity Mid Cap Value Fund ( FSMVX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
Your research on the Mid Cap Value segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is Fidelity Mid Cap Value Fund (FSMVX) a Strong Mutual Fund Pick Right Now?
If you're looking for a Mid Cap Value fund category, then a potential option is Fidelity Mid Cap Value Fund (FSMVX - Free Report) . FSMVX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify FSMVX in the Mid Cap Value category, an area rife with potential choices. Mid Cap Value mutual funds aim to target medium-sized companies that possess strong value and income opportunities for investors. A mid-cap company usually holds a market capitalization of between $2 billion and $10 billion.
History of Fund/Manager
FSMVX finds itself in the Fidelity family, based out of Boston, MA. Fidelity Mid Cap Value Fund made its debut in November of 2001, and since then, FSMVX has accumulated about $1.18 billion in assets, per the most up-to-date date available. The fund's current manager, Neil Nabar, has been in charge of the fund since July of 2021.
Performance
Of course, investors look for strong performance in funds. FSMVX has a 5-year annualized total return of 10.84% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 12.59%, 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. FSMVX's standard deviation over the past three years is 21.33% compared to the category average of 15.02%. The standard deviation of the fund over the past 5 years is 23.19% compared to the category average of 16.34%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.14, the fund is likely to be more volatile than 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 -4.29, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating 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 principally on equities that are traded in the United States.
Right now, 85.82% of this mutual fund's holdings are stocks, which have an average market capitalization of $18.34 billion. The fund has the heaviest exposure to the following market sectors:
- Finance
- Industrial Cyclical
Turnover is about 70%, so those in charge of the fund make more trades per year than the comparable average.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, FSMVX is a no load fund. It has an expense ratio of 0.89% compared to the category average of 0.96%. From a cost perspective, FSMVX is actually cheaper than its peers.
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, Fidelity Mid Cap Value Fund ( FSMVX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
Your research on the Mid Cap Value segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.