AlphaProfit Newsletter

Fidelity Select Funds Based Model Portfolios

Real Portfolios for Real Money

The AlphaProfit Sector Investors' Newsletter offers two sector fund-based model portfolios: Fidelity Core model portfolio and Fidelity Focus model portfolio. The model portfolios use Fidelity Select funds as building blocks. Fidelity Select funds are chosen using AlphaProfit's ValuM Investment Process.

Fidelity Select Funds Based Model Portfolios

"Your skill at choosing funds is very impressive and I appreciate having your assistance in my financial choices."

JG, Montclair, NJ

Both model portfolios are usually fully invested in equity funds and do not market-time. The model portfolios pursue capital appreciation; income is secondary. Tax efficiency is considered in periodic repositioning of the model portfolios.

You can use either or both of the model portfolios depending on the investment objectives of the individual account.

	Fidelity Core Model Portfolio	Fidelity Focus Model Portfolio
Investment Objective	Long-term capital appreciation	Aggressive growth
Portfolio Composition	7 to 8 Fidelity select funds on average	2 to 4 Fidelity select funds
Diversification	More diversified	Less diversified
Volatility	Less volatile	More volatile
Fund Holding Period	Most funds held 1 year or longer; some held for 6 months	Most funds held 6 months; some held longer
Tax Efficiency	More tax-efficient	Less tax-efficient
Suggested Account Size
Regular and Retirement Accounts (401k, Rollover IRA, IRA)	$25,000+	$7,500+
SEP-IRA and Keogh Plan	$5,000+	$1,500+
Who invests	Individual investors and investment advisers Popular with Rollover IRA, SEP-IRA, and 401k Investors with adequately sized accounts and moderate risk tolerance Investors seeking alternative to investing in diversified domestic equity funds	Individual investors and investment advisers Popular with investors seeking aggressive growth Investors with smaller sized accounts, higher risk tolerance or longer time horizon Investors seeking alternative to investing in non-diversified domestic equity funds Investors seeking to enhance the return of diversified portfolios

To maintain sufficient diversification, the Fidelity Core Model Portfolio may include index funds such as Fidelity Spartan 500 when fewer sectors and industries are attractive.

		Description of Fidelity Select Funds Based Model Portfolios
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