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Is Fidelity Select Industrials Portfolio (FCYIX) a Strong Mutual Fund Pick Right Now?

If investors are looking at the Sector - Other fund category, Fidelity Select Industrials Portfolio (FCYIX) could be a potential option. FCYIX carries 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 responsible for FCYIX, and the company is based out of Boston, MA. The Fidelity Select Industrials Portfolio made its debut in March of 1997 and FCYIX has managed to accumulate roughly $625.24 million in assets, as of the most recently available information. The fund's current manager, Janet Glazer, has been in charge of the fund since December of 2018.

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 8.91%, and it sits in the top 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 10.41%, 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. FCYIX's standard deviation over the past three years is 16.34% compared to the category average of 14.29%. Over the past 5 years, the standard deviation of the fund is 15.32% compared to the category average of 14.7%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. In FCYIX's case, the fund lost 55.53% in the most recent bear market and underperformed comparable funds by 7%. This could mean that the fund is a worse choice than comparable funds during a bear market.

Nevertheless, with a 5-year beta of 1.17, the fund 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. FCYIX has generated a negative alpha over the past five years of -3.49, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

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, FCYIX is a no load fund. It has an expense ratio of 0.75% compared to the category average of 1.17%. FCYIX is actually cheaper than its peers when you consider factors like cost.

This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.

Bottom Line

Overall, Fidelity Select Industrials Portfolio ( FCYIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Select Industrials Portfolio ( FCYIX ) looks like a good potential choice for investors right now.

This could just be the start of your research on FCYIXin the Sector - Other 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. 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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