Yahoo Finance Is FNMIX a Strong Bond Fund Right Now?
Having trouble finding a Mutual Fund Bond fund? Well, Fidelity New Markets Income (FNMIX) would not be a good potential starting point right now. FNMIX holds a Zacks Mutual Fund Rank of 4 (Sell), 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 FNMIX. Since Fidelity New Markets Income made its debut in May of 1993, FNMIX has garnered more than $1.63 billion in assets. The fund's current manager, Timothy Gill, has been in charge of the fund since January of 2019.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 2.14%, 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 -1.68%, which places it in the middle 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. Over the past three years, FNMIX's standard deviation comes in at 10.72%, compared to the category average of 13.8%. The standard deviation of the fund over the past 5 years is 11.77% compared to the category average of 14.66%. This makes the fund less volatile than its peers over the past half-decade.
FNMIX carries a beta of 0.34, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 1.62, which measures performance on a risk-adjusted basis.
Expenses
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, FNMIX is a no load fund. It has an expense ratio of 0.83% compared to the category average of 0.95%. From a cost perspective, FNMIX 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, even with its comparatively similar performance, average downside risk, and lower fees, Fidelity New Markets Income ( FNMIX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds 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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