Is Fidelity Select Consumer Discretion (FSCPX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Report for FSCPX
Any investors hoping to find a Sector - Other fund could think about starting with Fidelity Select Consumer Discretion (FSCPX). FSCPX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Fidelity is responsible for FSCPX, and the company is based out of Boston, MA. Fidelity Select Consumer Discretion debuted in June of 1990. Since then, FSCPX has accumulated assets of about $658.50 million, according to the most recently available information. Katherine Shaw is the fund's current manager and has held that role since August of 2017.
Of course, investors look for strong performance in funds. FSCPX has a 5-year annualized total return of 18.82% and it sits 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 18.44%, 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 24.41%, the standard deviation of FSCPX over the past three years is 22.63%. The standard deviation of the fund over the past 5 years is 18.53% compared to the category average of 19.96%. This makes the fund less volatile than its peers over the past half-decade.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FSCPX has a 5-year beta of 1.17, which means it is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a negative alpha over the past 5 years of -1.51, which shows that managers in this portfolio find it difficult to pick 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, FSCPX is a no load fund. It has an expense ratio of 0.75% compared to the category average of 1.27%. FSCPX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Overall, Fidelity Select Consumer Discretion ( FSCPX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Select Consumer Discretion ( FSCPX ) looks like a somewhat average choice for investors right now.
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