If investors are looking at the Sector - Other fund category, Fidelity Select Retailing (FSRPX) could be a potential option. FSRPX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FSRPX. Fidelity Select Retailing debuted in December of 1985. Since then, FSRPX has accumulated assets of about $3.12 billion, according to the most recently available information. The fund is currently managed by Boris Shepov who has been in charge of the fund since May of 2018.
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 15.52%, and is in the top 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 18.48%, which places it in the top third during this time-frame.
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 14.16%, the standard deviation of FSRPX over the past three years is 15.5%. Over the past 5 years, the standard deviation of the fund is 14.25% compared to the category average of 14.59%. This makes the fund less volatile than its peers over the past half-decade.
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. In FSRPX's case, the fund lost 40.11% in the most recent bear market and outperformed its peer group by 10%. These results could imply that the fund is a better choice than its peers during a sliding market environment.
Investors should note that the fund has a 5-year beta of 1.04, so it is likely going to be more volatile than the market at large. 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 positive alpha of 3.34, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FSRPX is a no load fund. It has an expense ratio of 0.75% compared to the category average of 1.30%. Looking at the fund from a cost perspective, FSRPX 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.
Overall, Fidelity Select Retailing ( FSRPX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on the Sector - Other 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 FSRPX 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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