Yahoo Finance Is FFHCX a Strong Bond Fund Right Now?
Having trouble finding a Mutual Fund Bond fund? Fidelity Series Floating Rate Hgh Income (FFHCX) is a potential starting point. FFHCX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
FFHCX is a part of the Fidelity family of funds, a company based out of Boston, MA. Fidelity Series Floating Rate Hgh Income debuted in October of 2011. Since then, FFHCX has accumulated assets of about $216.01 million, according to the most recently available information. The fund's current manager, Eric Mollenhauer, has been in charge of the fund since October of 2011.
Performance
Investors naturally seek funds with strong performance. FFHCX has a 5-year annualized total return of 4.6% 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 7.79%, 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. Over the past three years, FFHCX's standard deviation comes in at 4.33%, compared to the category average of 4.93%. The fund's standard deviation over the past 5 years is 6.55% compared to the category average of 7.07%. This makes the fund less volatile than its peers over the past half-decade.
FFHCX carries a beta of -0.07, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 3.34, which measures performance on a risk-adjusted basis.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FFHCX is a no load fund. It has an expense ratio of 0.03% compared to the category average of 0.97%. FFHCX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Fidelity Series Floating Rate Hgh Income ( FFHCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Your research on the Mutual Fund Bond 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 want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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