Is Fidelity Advisor Small Cap Growth A (FCAGX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Report for FCAGX
There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is Fidelity Advisor Small Cap Growth A (FCAGX). FCAGX bears a Zacks Mutual Fund Rank of 2 (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 FCAGX. Fidelity Advisor Small Cap Growth A debuted in November of 2004. Since then, FCAGX has accumulated assets of about $387.07 million, according to the most recently available information. The fund's current manager, Patrick Venanzi, has been in charge of the fund since November of 2011.
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 20.2%, 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 21.84%, which places it in the middle 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. FCAGX's standard deviation over the past three years is 22.46% compared to the category average of 16.86%. The standard deviation of the fund over the past 5 years is 19.24% compared to the category average of 13.92%. This makes the fund more volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 1.09, which means it is hypothetically more volatile than the market at large. 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. With a positive alpha of 1.24, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Examining 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 principally on equities that are traded in the United States.
This fund is currently holding about 77.27% stock in stocks, which have an average market capitalization of $5.95 billion. The fund has the heaviest exposure to the following market sectors:
- Retail Trade
With turnover at about 107%, this fund is making more trades per year than the comparable average.
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, FCAGX is a load fund. It has an expense ratio of 1.28% compared to the category average of 1.21%. From a cost perspective, FCAGX is actually more expensive than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Overall, Fidelity Advisor Small Cap Growth A ( FCAGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and higher fees, this fund looks like a good potential choice for investors right now.
This could just be the start of your research on FCAGXin the Mutual Fund Equity Report 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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