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Is Fidelity Advisor New Insights A (FNIAX) a Strong Mutual Fund Pick Right Now?

Mutual Fund Report for FNIAX

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This story originally appeared on Zacks

On the lookout for a Mutual Fund Equity Report fund? Starting with Fidelity Advisor New Insights A (FNIAX) should not be a possibility at this time. FNIAX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.

- Zacks

History of Fund/Manager

Fidelity is based in Boston, MA, and is the manager of FNIAX. Fidelity Advisor New Insights A made its debut in July of 2003, and since then, FNIAX has accumulated about $8.15 billion in assets, per the most up-to-date date available. The fund's current manager, William Danoff, has been in charge of the fund since July of 2003.

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 19.31%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 21.58%, which places it in the bottom 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, FNIAX's standard deviation comes in at 18.99%, compared to the category average of 16.18%. Over the past 5 years, the standard deviation of the fund is 16.21% compared to the category average of 13.35%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FNIAX has a 5-year beta of 1.02, which means it is likely to be as volatile as the market average. 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. FNIAX has generated a positive alpha over the past five years of 1.05, demonstrating that managers in this portfolio are skilled in picking 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 primarily on equities that are traded in the United States.

This fund is currently holding about 92.66% stock in stocks, which have an average market capitalization of $497.89 billion. The fund has the heaviest exposure to the following market sectors:

  1. Technology
  2. Retail Trade
  3. Finance

Turnover is 35%, which means, on average, the fund makes fewer trades than its comparable peers.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FNIAX is a load fund. It has an expense ratio of 0.89% compared to the category average of 1.02%. From a cost perspective, FNIAX 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 Advisor New Insights A ( FNIAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Fidelity Advisor New Insights A ( FNIAX ) looks like a somewhat weak choice for investors right now.

Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.





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