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3 Fidelity Mutual Funds to Buy Amid Recession Worries
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Though major U.S. indexes like the S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average have given investors positive returns of 15.2%, 13.4% and 8.1%, respectively, seasonal weaknesses and recent soft economic data have again flared up recession fears.
According to the Job Openings and Labor Turnover Survey or JOLTS report, job openings in July have decreased to a 3.5-year low, indicating weakness in the labor market. Also, contraction in manufacturing activities, per reports published by the Institute of Supply Management, has raised concerns over whether the Federal Reserve is behind the curve on interest rate cuts.
Amid such volatile market conditions, mutual fund investing can help those who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds. Fidelity mutual funds like Fidelity Advisor Energy (FIKAX - Free Report) , Fidelity Advisor Semiconductors (FIKGX - Free Report) and Fidelity Large Cap Stock (FCLKX - Free Report) should be good choices since they provide low-cost and uncomplicated equity funds that can help investors meet their goals.
These funds have wide exposure in industries like finance, industrial cyclical, utilities, technology and energy. These have not only preserved investors’ wealth but also generated excellent returns.
Why Invest in Fidelity Mutual Funds?
Amid choppy market conditions, Fidelity mutual funds would be a compelling choice for investors. This is because Fidelity mutual funds have given positive returns in the past and are expected to perform well in the long run.
Headquartered in Boston, MA, Fidelity Investment is one of the oldest and most trusted mutual fund companies in the world. The company was founded in 1946 and had 51.5 million individual investors and $14.1 trillion of assets under administration as of June 30, 2024.
Fidelity Investment company has more than 7,5000 associates in 11 countries acrossNorth America, Europe, Asia and Australia to carry out extensive and in-depth research and provide potential investment avenues worldwide to their clients.
The company provides best-in-the-class financial planning, advisory services, retirement planning wealth management, brokerage services and college services to its clients. Thus, investors who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds can choose Fidelity mutual funds. Fidelity Investment sells its mutual fund products directly to its clients, which results in a zero-load charge.
We have thus selected three Fidelity mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, and minimum initial investments within $5000. The funds carry an expense ratio of less than 1%. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Advisor Energy fund invests most of its net assets in common stocks of domestic and foreign companies that areprincipally engaged in the energy sectors like the conventional areas of oil, gas, electricity and coal, and newer sources of energy such as nuclear, geothermal, oil shale and solar power. FIKAX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.
Maurice FitzMaurice has been the lead manager of FIKAX since Jan. 1, 2020. Most of the fund’s holdings were in companies like Exxon Mobil (24.4%), Cenovus Energy (6.1%) and Schlumberger (5.1%) as of April 30, 2024.
FIKAX’s three-year and five-year annualized returns are 30.8% and 14.9%, respectively. FIKAX has an annual expense ratio of 0.60%.
To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.
Fidelity Advisor Semiconductors fund invests most of its net assets in common stocks of domestic and foreign companies that areprincipally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FIKGX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.
Adam Benjamin has been the lead manager of FIKGX since March 16, 2020. Most of the fund’s holdings were in companies like NVIDIA (24.8%), NXP Semiconductors (6.7%) and Micron Technology (6.4%) as of April 30, 2024.
FIKGX’s three-year and five-year annualized returns were 26.9% and 34.3%, respectively. FIKGX has an annual expense ratio of 0.61%.
Fidelity Large Cap Stock invests most of its net assets in common stocks of large market capitalization companies with market capitalization similar to the companies listed on the Russell 1000 Index or the S&P 500 Index. FCLKX advisors generally invest in issues of both domestic and foreign companies.
Matthew W. Fruhan has been the lead manager of FCLKX since May 25, 2017. Most of the fund’s exposure is in companies like Microsoft (7.0%), Exxon Mobil (5.8%) and General Electric (5.8%) as of April 30, 2024.
FCLKX’s three-year and five-year annualized returns are 13.3% and 16.2%, respectively. FCLKX has an annual expense ratio of 0.45%.
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3 Fidelity Mutual Funds to Buy Amid Recession Worries
Though major U.S. indexes like the S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average have given investors positive returns of 15.2%, 13.4% and 8.1%, respectively, seasonal weaknesses and recent soft economic data have again flared up recession fears.
According to the Job Openings and Labor Turnover Survey or JOLTS report, job openings in July have decreased to a 3.5-year low, indicating weakness in the labor market. Also, contraction in manufacturing activities, per reports published by the Institute of Supply Management, has raised concerns over whether the Federal Reserve is behind the curve on interest rate cuts.
Amid such volatile market conditions, mutual fund investing can help those who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds. Fidelity mutual funds like Fidelity Advisor Energy (FIKAX - Free Report) , Fidelity Advisor Semiconductors (FIKGX - Free Report) and Fidelity Large Cap Stock (FCLKX - Free Report) should be good choices since they provide low-cost and uncomplicated equity funds that can help investors meet their goals.
These funds have wide exposure in industries like finance, industrial cyclical, utilities, technology and energy. These have not only preserved investors’ wealth but also generated excellent returns.
Why Invest in Fidelity Mutual Funds?
Amid choppy market conditions, Fidelity mutual funds would be a compelling choice for investors. This is because Fidelity mutual funds have given positive returns in the past and are expected to perform well in the long run.
Headquartered in Boston, MA, Fidelity Investment is one of the oldest and most trusted mutual fund companies in the world. The company was founded in 1946 and had 51.5 million individual investors and $14.1 trillion of assets under administration as of June 30, 2024.
Fidelity Investment company has more than 7,5000 associates in 11 countries acrossNorth America, Europe, Asia and Australia to carry out extensive and in-depth research and provide potential investment avenues worldwide to their clients.
The company provides best-in-the-class financial planning, advisory services, retirement planning wealth management, brokerage services and college services to its clients. Thus, investors who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds can choose Fidelity mutual funds. Fidelity Investment sells its mutual fund products directly to its clients, which results in a zero-load charge.
We have thus selected three Fidelity mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, and minimum initial investments within $5000. The funds carry an expense ratio of less than 1%. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Advisor Energy fund invests most of its net assets in common stocks of domestic and foreign companies that areprincipally engaged in the energy sectors like the conventional areas of oil, gas, electricity and coal, and newer sources of energy such as nuclear, geothermal, oil shale and solar power. FIKAX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.
Maurice FitzMaurice has been the lead manager of FIKAX since Jan. 1, 2020. Most of the fund’s holdings were in companies like Exxon Mobil (24.4%), Cenovus Energy (6.1%) and Schlumberger (5.1%) as of April 30, 2024.
FIKAX’s three-year and five-year annualized returns are 30.8% and 14.9%, respectively. FIKAX has an annual expense ratio of 0.60%.
To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.
Fidelity Advisor Semiconductors fund invests most of its net assets in common stocks of domestic and foreign companies that areprincipally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FIKGX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.
Adam Benjamin has been the lead manager of FIKGX since March 16, 2020. Most of the fund’s holdings were in companies like NVIDIA (24.8%), NXP Semiconductors (6.7%) and Micron Technology (6.4%) as of April 30, 2024.
FIKGX’s three-year and five-year annualized returns were 26.9% and 34.3%, respectively. FIKGX has an annual expense ratio of 0.61%.
Fidelity Large Cap Stock invests most of its net assets in common stocks of large market capitalization companies with market capitalization similar to the companies listed on the Russell 1000 Index or the S&P 500 Index. FCLKX advisors generally invest in issues of both domestic and foreign companies.
Matthew W. Fruhan has been the lead manager of FCLKX since May 25, 2017. Most of the fund’s exposure is in companies like Microsoft (7.0%), Exxon Mobil (5.8%) and General Electric (5.8%) as of April 30, 2024.
FCLKX’s three-year and five-year annualized returns are 13.3% and 16.2%, respectively. FCLKX has an annual expense ratio of 0.45%.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>