4 Best-Performing Fidelity Mutual Funds of Q1 – April 9, 2019

Fidelity mutual funds got more attention from investors in the first three months of the year. After all, Fidelity offers a variety of investment options from sector-based funds to key actively managed funds.

The company provides investment advice, discount brokerage services and wealth management services to its clients as well. 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 Q1 2019

By the end of the first quarter, Fidelity Investments had more than $1.9 trillion of assets under management. The initial investment of majority of Fidelity mutual funds ranges from $0 to $2,500. As of Mar 31, 2019, out of the total number of funds under Fidelity, only 3.3% were load funds, while the remaining 96.7% were no load funds.

Further, Fidelity Advisor Series Growth Opportunities Fund (FAOFX Free Report) turned up as one of the best performing mutual fund from the Fidelity family. The fund posted solid gains in the period between January and March. FAOFX, which invests a bulk of its assets in common stocks of companies which depict above-average growth potential, returned 23% in the first quarter and has added 21.7% so far this year.

Awards & Recognitions

Fidelity Investments won 21 2019 U.S. Lipper Fund Awards. Lipper awards honor fund management firms as well as individual mutual funds which significantly outperform its peers on risk-adjusted basis. Further, such funds or family of funds should also provide consistent returns over the last three-, five- and ten-year periods.

Needless to say, the fund family performed exceedingly well in all the parameters. Fidelity’s ability to offer effective research and tools, low rate investment and excellent services makes it highly sought-after.

Factors Supporting Fidelity’s Growth

Fidelity invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in the technology sector. In the cyclical sectors, the fund family invested the maximum in the financial services sector, while in defensive sectors it invested heavily in the healthcare.

Technology Select Sector SPDR (XLK) climbed 20.9% in the first quarter and was the best performing sector in the first quarter among the 11 S&P 500 sectors. Also, as of Apr 5, 2019, technology mutual funds collectively delivered impressive returns of 21.6% in the past three months, according to Morningstar. The financial and healthcare mutual funds too registered three-month returns of 10.6% and 11.7%, respectively.

4 Best Funds to Buy Now

Given such 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 such factors. Moreover, these funds have encouraging first quarter and year-to-date (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 money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Fidelity Select Software & IT Services Portfolio No Load (FSCSX Free Report) fund invests the majority of its assets in companies whose primary operations are related to software or information-based services. It primarily focuses on acquiring common stocks of both domestic and foreign companies. 

This Sector – Tech product has a history of positive total returns for over 10 years. Specifically, the fund’s returns over the first quarter and YTD benchmarks are 20% and 18.5%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.

The fund carries a Zacks Mutual Fund Rank #1 and has an annual expense ratio of 0.73%, which is below the category average of 1.31%.

Fidelity Select Semiconductors (FSELX Free Report) fund invests the bulk of its assets in common stocks of companies involved in the manufacture, design and sale of electronic equipment and components. FSELX seeks growth of capital. The fund invests in both U.S. companies and non-U.S. companies.

This Sector – Tech product has a history of positive total returns for over 10 years. Specifically, the fund’s returns over the first quarter and YTD benchmarks are 20.7% and 22.2%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.

The fund carries a Zacks Mutual Fund Rank #2 and has an annual expense ratio of 0.75%, which is below the category average of 1.31%.

Fidelity Select Portfolio Medical Technology And Devices Portfolio (FSMEX Free Report) fund invests 80% of its assets in securities of companies engaged in manufacturing and distribution of medical devices and equipment. The fund invests in both U.S. and non-U.S. stocks.

This Zacks sector – Health product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.

FSMEX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.76%, which is below the category average of 1.28%. The fund has first quarter and YTD returns of 16.2% and 13.7%, respectively.

Fidelity Select Consumer Finance Portfolio (FSVLX Free Report) fund seeks appreciation of capital. FSVLX invests more than 80% of its assets in equity securities of companies involved in offering products and services related to consumer finance. The fund considers financial strength and economic conditions before investing in a company. FSVLX invests in both U.S.- based and well as non-U.S.- based companies.

This Zacks sector – Finance product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.

FSVLXhas a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.90%, which is below the category average of 1.44%. The fund has first quarter and YTD returns of 16.9% and 18.2%, respectively.

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