Fidelity Select Funds: Choose the Best Fidelity Sector Fund Consistently
Sam Subramanian PhD, MBA
Few investment products have as many fanatics as Fidelity Select funds do. Why? The Fidelity Select fund aficionados know that they can beat the market by judiciously selecting such funds.
Here are the facts: The average Fidelity Select fund has outperformed the S&P 500 by 4.7% per year over the past 20 years.
The stats get even better.
Each year's best Fidelity Select fund has on average outperformed the S&P 500 by a whopping 51.2%.
Clearly, Fidelity Select funds are high potential sector funds that provide great returns IF you get the selections right.
The trick to benefiting from Fidelity Select funds is to capture the rewards they provide while mitigating the risks they carry.
Here is how AlphaProfit helps you do just that ... make money by investing in the right Fidelity Select funds at the right time.
Select Best Sectors and Top Fidelity Select Funds
You have the choice of over 40 Fidelity Select and sector funds that span different sectors of the stock market.
Different Fidelity Select funds tend to perform well during different stages of the business and interest rate cycles. Fidelity Select funds in the Consumer Discretionary sector for example can perform well as interest rates fall and the economy starts to recover from a recession while Fidelity Select funds in the Information Technology sector can perform well during expansion phases.
All too often, investors make the mistake of selecting sectors or industries based on one factor ... price trend. Such selection methods are prone to high failure rates.
To help you consistently invest in the right sectors and time entries & exits, AlphaProfit analyzes sectors using a combination of fundamental and technical factors within the context of the business cycle.
By using a combination of criteria such as valuation, momentum, and news quality to holistically analyze sectors, AlphaProfit ascertains winning sectors while minimizing negative surprises.
AlphaProfit then blends the above top-down analyses with bottom-up analyses of top holdings in Fidelity Select funds to determine the best Fidelity Select funds in the best sectors.
Diversify across Top Fidelity Select Funds
Popular Fidelity Select and
Consumer Discretionary Sector
Fidelity Select Automotive, FSAVX
Fidelity Select Leisure, FDLSX
Consumer Staples Sector
Fidelity Select Consumer Staples, FDFAX
Fidelity Select Energy, FSENX
Fidelity Select Natural Resources, FNARX
Fidelity Select Banking, FSRBX
Fidelity Real Estate Investment, FRESX
Health Care Sector
Fidelity Select Biotechnology, FBIOX
Fidelity Select Health Care, FSPHX
Fidelity Select Defense & Aerospace, FSDAX
Fidelity Select Industrials, FCYIX
Information Technology Sector
Fidelity Select Electronics, FSELX
Fidelity Select Technology, FSPTX
Fidelity Select Chemicals, FSCHX
Fidelity Select Gold, FSAGX
Fidelity Select Utilities, FSUTX
Fidelity Telecom & Utilities, FIUIX
Despite the rigor of the evaluation and selection process, there can be occasions where investment in Fidelity Select funds may not pan out exactly as expected. The performance of a specific Fidelity Select fund can at times be affected by exogenous events like the earthquake in Japan or unanticipated industry developments like the ban on oil drilling in Gulf of Mexico.
To mitigate your risks, AlphaProfit brings together the best Fidelity Select funds from top sectors to construct Fidelity Select fund-based model portfolios for different investment objectives. AlphaProfit provides weightings for the individual Fidelity Select funds with a view to minimize portfolio volatility.
Ensure Top Fidelity Select Fund Selections at all Times through Timely Sector Rotation
AlphaProfit uses its time-tested sector rotation strategy to ensure Fidelity Select funds with outstanding return potential are included in the model portfolios at all times. By the same token, the sector rotation strategy works to weed out Fidelity Select funds with unappealing return potential in a timely manner.
Beat the Market with Fidelity Select Fund Model Portfolios
AlphaProfit's proven Fidelity Select fund selection process enables thousands of investors to thrive in turbulent markets.
AlphaProfit provides two market-beating Fidelity Select fund-based model portfolios you can use in your regular and retirement accounts.
The AlphaProfit Focus model portfolio pursues aggressive growth while the AlphaProfit Core model portfolio is tailored for investors seeking long-term capital appreciation.
A dollar invested in the Aggressive Growth (Fidelity-Focus) and Capital Appreciation (Fidelity-Core) model portfolios is worth $47.85 and $23.90, respectively. This implies annualized returns of 21.0% and 17.0%, respectively.
Comparable investments in the Dow Jones Wilshire 5000 and S&P 500 benchmarks are worth $6.12 and $5.94, respectively implying annualized returns of 9.4% and 9.2%, respectively.
Performance of Fidelity model portfolios as of March 31, 2014.
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Dow Jones & Company's Hulbert Financial unit has ranked the AlphaProfit Focus and Core model portfolios #1 rank numerous times.
Here are just a few examples of actual returns earned by AlphaProfit readers from individual Fidelity Select fund selections:
- 272.9% gain from Fidelity Select Technology (FSPTX)
- 103.4% gain from Fidelity Select Health Care (FSPHX)
- 102.1% gain from Fidelity Select Retailing (FSRPX)
Learn 5 Smart Ways of Using Fidelity Select and Sector Funds
Sign up for AlphaProfit’s Free Fidelity Fund Newsletter MoneyMatters and receive your Free Report on 5 Smart Ways of Using Fidelity Select and Sector Funds.
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About AlphaProfit MoneyMatters and AlphaProfit
AlphaProfit MoneyMatters is a free e-letter distributed to registered users of AlphaProfit's website. The e-letter analyzes the economy, markets, and sectors and provides money-making insights on stocks, exchange-traded funds, and mutual funds.
AlphaProfit MoneyMatters is edited by Dr. Sam Subramanian acclaimed for his financial acumen and analytical skills.
AlphaProfit Investments, LLC is an independent investment research firm based in Sugar Land, TX. AlphaProfit publishes the AlphaProfit Sector
Investor's Newsletter, edited by Dr. Sam Subramanian. Leveraging sector funds, the Newsletter provides high-performance model portfolios
with Fidelity funds and exchange-traded funds.
It also includes actionable stock recommendations. This newsletter features among MarketWatch's top 10 investment newsletters and has won
the coveted #1 rank from Hulbert Financial
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