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Is Fidelity Select Industrials Portfolio (FCYIX) a Strong Mutual Fund Pick Right Now?

Mutual Fund Report for FCYIX

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This story originally appeared on Zacks

Any investors hoping to find a Sector - Other fund could think about starting with Fidelity Select Industrials Portfolio (FCYIX). FCYIX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.

- Zacks

History of Fund/Manager

FCYIX is a part of the Fidelity family of funds, a company based out of Boston, MA. Since Fidelity Select Industrials Portfolio made its debut in March of 1997, FCYIX has garnered more than $410.70 million in assets. The fund's current manager, Janet Glazer, has been in charge of the fund since December of 2018.

Performance

Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 11.42%, and it sits 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 9.32%, 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. Over the past three years, FCYIX's standard deviation comes in at 24.27%, compared to the category average of 26.12%. The fund's standard deviation over the past 5 years is 19.96% compared to the category average of 21.34%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.22, which means it is hypothetically more volatile than the market at large. 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. FCYIX has generated a negative alpha over the past five years of -7.63, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Exploring 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 largely on equities that are traded in the United States.

The mutual fund currently has 86.59% of its holdings in stocks, with an average market capitalization of $52.32 billion. The fund has the heaviest exposure to the following market sectors:

  1. Industrial Cyclical
  2. Technology
  3. Retail Trade
  4. Services
With turnover at about 272%, this fund makes more trades in a given year than the category average.

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, FCYIX is a no load fund. It has an expense ratio of 0.74% compared to the category average of 1.27%. From a cost perspective, FCYIX is actually cheaper than its peers.

This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.

Bottom Line

Overall, Fidelity Select Industrials Portfolio ( FCYIX ) 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.

Want even more information about FCYIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.



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