Fidelity Select Funds
|
|
|
For Sector Investing
|
|
|
A global leader
in financial services, Fidelity Investments headquartered in Boston, MA, manages more than several hundred Fidelity mutual funds, including sector funds.
Fidelity sector funds are called Fidelity Select Portfolios. Fidelity Management & Research Company (FMR Co.) is the investment advisor for Fidelity Select funds.
Read AlphaProfit's independent advice on
Fidelity Investments & Fidelity funds
Breadth of Fidelity Select Funds
Fidelity offers 41 Select funds. Umbrella Fidelity Select funds for each of the ten sectors of the
Global Industry Classification Standard are offered. Several industry group-specific Fidelity Select funds are available as well.
Investment Approach
All of the Fidelity Select funds are actively managed. Most Fidelity Select funds use the Morgan Stanley Capital International US index as benchmark for
performance evaluation. In selected cases, other well-known indexes are used as benchmark.
Fees, Expenses, and Availability
Fidelity Select funds are no-load funds. The expense ratio for Fidelity Select funds is generally around 1%.
Investors with a Fidelity account can buy, sell, or exchange Fidelity Select funds online without incurring a transaction fee after holding
Fidelity Select funds for a minimum period of 30 days.
Fidelity Select funds are also usually available for trading at other brokerage firms like E*Trade, Schwab, and TD Ameritrade.
Fidelity Select Fund's Initial Purchase Requirements
The minimum initial investment required to open an account in Fidelity Select Funds is $2,500 in regular as well as Traditional, Roth, and Rollover IRA accounts.
The minimum initial investment is $500 in SEP-IRA and Keogh accounts.
AlphaProfit Take
After launching the first Fidelity Select fund in 1981, Fidelity Investments has increased the number of such funds over time. Fidelity Select funds now comprise the largest selection of sector and industry group funds offered by any mutual fund company.
Frequent rotation of Select fund managers has been a point of criticism of Fidelity Select funds until 2004. Fidelity has since lengthened manager tenure to deepen institutional knowledge and bolster internal research.
The change is working.
Fidelity Select funds are leading their peers by investing in the best investment ideas in specific sectors or industries. According to Lipper, Fidelity Select funds are beating 64% of their peers over the past five years, better than Fidelity's total universe of stock funds where 47% of funds beat their peers over five years.
Investors seeking to invest in sector or industry-group themes will find the no load Fidelity Select funds worthy of consideration. Given the breadth of sector and industry-group offerings, Fidelity Select funds are also well-suited for constructing long-term capital appreciation and aggressive growth-oriented portfolios.
AlphaProfit Newsletter and Model Portfolios
AlphaProfit Sector Investors' Newsletter is the premier investing resource for Fidelity Select fund investors. Using Fidelity Select funds extensively, the Newsletter offers model portfolios for long-term capital appreciation and aggressive growth. The Newsletter and its model portfolios have ranked #1 by Hulbert Financial Digest 10 times.
More on Performance of Fidelity Mutual Funds Model Portfolios
Read AlphaProfit's independent advice on Fidelity Investments & Fidelity funds
Related Links
Fidelity Funds Model Portfolios
Best Fund Recommendations from Fidelity FundsNetwork
Sign up for free Fidelity newsletter
|
|
Protect & grow your wealth with
Fidelity Fund picks from free e-letter
AlphaProfit MoneyMatters
By Hulbert #1 rank winner Dr. Sam Subramanian
'Incisive Insights, Impressive Results' - Jim Woodruff
|
|
|
