Yahoo Finance 5 Fidelity Mutual Funds to Buy for Long-Term Gains
This year, major U.S. indexes like the S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average have given investors positive returns of 14.8%, 18.1% and 3.8%, respectively.
The Consumer Price Index (CPI) resumed its downward trend at the start of Q2, in a sigh of relief for investors. CPI for the month of May remained flat after rising 0.3% in April, though the year-over-year increase was 3.3%. Also, an unexpected fall in the Producer Price Index (PPI) over the same period indicates that inflation is slowly cooling. PPI for the month of May fell by 0.2% in comparison to 0.5% in April, mostly due to lower energy costs.
The Federal Reserve, in the last Federal Open Market Committee (FOMC) meeting, kept the benchmark interest rates unchanged in the range of 5.25-5.50% for the seventh time in a row. Even after an improvement in May inflation numbers, Fed Chair Jerome Powell, in his comments, said that the central bank does not yet have the confidence to start lowering interest rates and forecast one rate cut this year.
Keeping in mind that the Fed will probably continue its “higher for longer” policy to achieve its inflation target of 2%, Fidelity mutual funds would be a compelling choice for investors. This is because Fidelity mutual funds have given positive returns in the past and are expected to perform well in the long run.
Headquartered in Boston, MA, Fidelity Investment is one of the oldest and most trusted mutual fund companies in the world. The company was founded in 1946 and had 44.2 million individual investors and $12.6 trillion of assets under administration as of Dec 31, 2023.
Fidelity Investment company has more than 7,4000 associates in nine countries acrossNorth America, Europe, Asia and Australia to carry out extensive and in-depth research and provide potential investment avenues worldwide to their clients.
The company provides best-in-the-class financial planning, advisory services, retirement planning wealth management, brokerage services and college services to its clients. Thus, investors who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds can choose Fidelity mutual funds. Fidelity Investment sells its mutual fund products directly to its clients, which results in a zero-load charge.
We have thus selected five Fidelity mutual funds that have wide exposure in industries like finance, industrial cyclical, utilities, technology, health, and energy. These have not only preserved investors’ wealth but also generated excellent returns.
The funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive year-to-date (YTD), three-year and five-year annualized returns, and minimum initial investments within $5000. The funds carry an expense ratio of 1% or less. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Advisor Semiconductors FIKGX fund invests most of its net assets in common stocks of domestic and foreign companies that areprincipally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FIKGX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.
Adam Benjamin has been the lead manager of FIKGX since Mar 15, 2020. Most of the fund’s holdings were in companies like NVIDIA (24.8%), NXP Semiconductors (7.1%) and On Semiconductor (6.8%) as of Jan 31, 2024.
As of May 31, 2024, FIKGX’s YTD, three-year and five-year annualized returns are 36.8%, 29.4% and 39.2%, respectively. FIKGX has an annual expense ratio of 0.61%.
To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.
Fidelity Advisor Energy FIKAX fund invests most of its net assets in common stocks of domestic and foreign companies that areprincipally engaged in the energy sectors like the conventional areas of oil, gas, electricity and coal, and newer sources of energy such as nuclear, geothermal, oil shale and solar power. FIKAX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.
Maurice FitzMaurice has been the lead manager of FIKAX since Dec 31, 2019. Most of the fund’s holdings was in companies like Exxon Mobil (24.1%), Canadian Natural Resources (5.5%) and Chevron (5.3%) as of Jan 31, 2024.
As of May 31, 2024, FIKAX’s YTD, three-year and five-year annualized returns are 14.8%, 28.9% and 16.3%, respectively. FIKAX has an annual expense ratio of 0.60%.
Fidelity Select Insurance Portfolio FSPCX fund invests most of its net assets in common stocks of domestic and foreign companies that areengaged in underwriting, reinsuring, selling, distributing, or placing property and casualty, life, or health insurance. FSPCX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.
Fahim Razzaque has been the lead manager of FSPCX since Jul 13, 2022. Most of the fund’s exposure is in companies like Marsh & Mclennan (10.5%), Chubb (9.8%) and The Travelers Companies (8.9%) as of Feb 29, 2024.
As of May 31, 2024, FSPCX’sYTD, three-year and five-year annualized returns of 16.8%, 15% and 15.4%, respectively. FSPCX has an annual expense ratio of 0.79%.
Fidelity Select Utilities Portfolio FSUTX fund invests most of its net assets in common stocks of foreign and domestic issues that are primarily engaged in the utility industry or companies deriving a majority of their revenues from utility operations. FSUTX advisors choose to invest in stocks based on fundamental analysis factors like financial condition, industry position, as well as market and economic conditions.
Douglas Simmons has been the lead manager of FSUTX since Oct 1, 2006. Most of the fund’s exposure is in companies like Nextera Energy (13.1%), Sempra (8.9%) and Constellation Energy (6.6%) as of Feb 29, 2024.
As of May 31, 2024, FSUTX’s YTD, three-year and five-year annualized returns are 19.9%, 12.5% and 10.7%, respectively. FSUTX has an annual expense ratio of 0.73%.
Fidelity Select Pharmaceuticals Portfolio FPHAX fund invests most of its net assets in common stocks of domestic and foreign companies that areengaged in the research, development, manufacture, sale, or distribution of pharmaceuticals and drugs of all types. FPHAX advisors choose to invest in stocks based on fundamental analysis factors such as financial condition, industry position, as well as market and economic conditions.
Karim Suwwan has been the lead manager of FPHAX since Jun 30, 2017. Most of the fund’s exposure was in companies like Eli Lilly (24.2%), Novo Nordisk (14.4%) and Astrazeneca (8.2%) as of Feb 29, 2024.
As of May 31, 2024, FPHAX’s YTD, three-year and five-year annualized returns are 22.4%, 12.4% and 16.4%, respectively. FPHAX has an annual expense ratio of 0.74%.
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