4 Fidelity Mutual Funds To Buy In 2020
Zacks Investment Research | Dec 29, 2019 09:08PM ET
Fidelity Investments is one of the largest and oldest mutual fund companies in the world. It offers a variety of investment options, from sector-based funds to key actively managed funds. The company provides investment advice, discount brokerage services, retirement services, wealth management services, securities execution, and clearance and life insurance products to its clients.
At Fidelity, a large group of investment professionals carry out extensive and in-depth research to provide potential investment avenues worldwide to their investors. To top it, low expenses, effective fund management and the ability to survive market volatility have resulted in strong fund performance.
Fidelity’s Performance in 2019
By the end of November, Fidelity Investments had more than $8.2 trillion of assets under management. The initial investment of the majority of Fidelity mutual funds ranges from $0 to $2,500. As of Dec 30, 2019, out of the total number of funds under Fidelity, only 3.2% were load funds, while the remaining 96.8% were no load funds.
Further, Fidelity Advisor Growth Opportunities Fund Class M (FAGOX) turned out to be one of the best-performing mutual funds from this family. The fund has posted solid gains in the year-to-date period. FAGOX, which invests a bulk of its assets in common stocks of companies with above-average growth potential, has returned 28.3% over the past three years.
Factors Supporting Gains
Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in technology. Among the cyclical sectors, the fund family invested the maximum in the financial services sector, while among the defensive sectors it invested heavily in healthcare.
Technology Select Sector SPDR (XLK) has climbed 48.3% so far this year and is the best-performing sector so far this year among the 11 S&P 500 sectors.
4 Best Funds to Buy Now
Given the circumstances, we have highlighted four Fidelity mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from the above-mentioned factors. Moreover, these funds have encouraging three-year and YTD returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking their money in mutual funds (read more: Original post
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