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Is Fidelity Advisor Energy Fund M (FAGNX) a Strong Mutual Fund Pick Right Now?

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If you've been stuck searching for Sector - Energy funds, consider Fidelity Advisor Energy Fund M (FAGNX - Free Report) as a possibility. FAGNX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

FAGNX is one of many Sector - Energy funds to choose from. Sector - Energy mutual funds are comprised of various changing and hugely important industries throughout the massive global energy sector. Even though clean energy is beginning to pick up steam, oil and gas companies have the highest exposure, but carbon-based fuels will be the biggest group of assets in these funds.

History of Fund/Manager

Fidelity is based in Boston, MA, and is the manager of FAGNX. The Fidelity Advisor Energy Fund M made its debut in December of 1987 and FAGNX has managed to accumulate roughly $16.64 million in assets, as of the most recently available information. The fund is currently managed by Maurice FitzMaurice who has been in charge of the fund since January of 2020.

Performance

Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 15.24%, and it sits in the middle 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 28.37%, 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. FAGNX's standard deviation over the past three years is 28.75% compared to the category average of 0%. Over the past 5 years, the standard deviation of the fund is 36.83% compared to the category average of 21%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.18, the fund is likely to be more 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. The fund has produced a positive alpha over the past 5 years of 2.09, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FAGNX is a load fund. It has an expense ratio of 1.26% compared to the category average of 41%. From a cost perspective, FAGNX is actually cheaper than its peers.

Investors should also note that the minimum initial investment for the product is $0 and that 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 Advisor Energy Fund M ( FAGNX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and lower fees, Fidelity Advisor Energy Fund M ( FAGNX ) looks like a good potential choice for investors right now.

This could just be the start of your research on FAGNXin the Sector - Energy category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well 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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