Did Your Nest Egg Gain from the Coronavirus Crash?

Sick buying high & selling low? Fed up of the fees you pay? Tired researching investments? End your financial pain now. You have the opportunity to earn superior returns with low expenses, low risk, and minimal effort.

For a change, you will actually buy low, sell high, and keep what you earn. Register free and test drive AlphaProfit Premium Service investment newsletter now.

Fidelity Sector Funds

Maximize Your Returns and Minimize Risksfidelity-sector-funds-model-portfolios

Fidelity sector funds can be volatile investment vehicles particularly when viewed in isolation. However, AlphaProfit can help you achieve extraordinary returns by exploiting the return potential of Fidelity sector funds while lowering your risk.                                                   AlphaProfit helps you maximize your returns from Fidelity sector funds while minimizing your risks.

How do we do it?

We maximize your reward and minimize your risk by taking a portfolio approach to investing with sector funds.

Using Fidelity Sector funds, we construct two actionable model portfolios for you to use:

pointer   AlphaProfit Core Portfolio

pointer   AlphaProfit Focus Portfolio

  • AlphaProfit Core is a diversified portfolio constructed using Fidelity sector funds. The Core model portfolio takes a targeted approach to diversification by including a set of industry groups that are expected to outperform the broad equity market.
  • AlphaProfit Focus is a concentrated portfolio constructed using Fidelity sector funds. The Focus model portfolio pursues aggressive growth by typically including 2 to 4 Fidelity sector funds.

Fidelity Sector Funds with High Expected Sector-Specific Returns Maximizes Your Reward

Stock prices of companies within a sector or industry move together due to causal factors. Examples of such causal factors include:

  • Business cycle dynamics
  • Key sector or industry earnings’ driver trend
  • Demographic or consumer demand changes
  • New technology or product introduction
  • Government policies or regulatory changes
  • International events

Since sector funds focus their investments within a specific sector or industry, their returns are strongly dependent on the impact of sector-specific factors. AlphaProfit maximizes your return by selecting Fidelity sector funds that have high expected sector-specific returns.

In Capital Asset Pricing Model or CAPM terms, we seek Fidelity sector funds with high expected values of future CAPM Alpha. We use the ValuM™ Investment Process to analyze and identify Fidelity sector funds for inclusion in our model portfolios.

Choosing a Group of Fidelity Sector Funds to Minimizes Your Risk

Sector funds concentrate their investments in a specific sector of the economy while diversifying the fund’s assets within that sector. The causal factors that drive sector-specific returns lead to sector-specific risks. We endeavor to diversify sector-specific risks by choosing a group of Fidelity Sector funds.


Must-read Articles on Mutual Fund Investing

Using Sector Funds to Construct Diversified Mutual Fund Portfolios

High-potential diversified portfolios can be constructed by dividing assets among a group of sector funds. This approach gives the investor flexibility to over-weight or under-weight certain sectors versus broadly diversified indexes. 'Sector funds are too risky.' 'I doubled my money with Fidelity Select Technology in 12 months!' 'Avoid sector funds.' If all of this sounds confusing, you are not alone.

401k Rollover IRA: 401k Retirement Plans’ Booster Rocket, Rollover IRA

Switching your job? Retiring? Congratulations! A window of opportunity opens for you with the Rollover Individual Retirement Account or Rollover IRA. In an era of corporate restructuring and outsourcing, Rollover IRA is among the most powerful means available for securing one’s retirement. Yet, the potential of Rollover IRA to enhance one’s retirement savings commonly remains under-appreciated.

New ETF and Mutual Fund Recommendations

ETF Mutual Fund RecommendationsThe Fidelity and ETF Core and Focus model portfolios have gained at annualized rates of 14.6% and 17.8%, respectively since 1994. The model portfolios will be repositioned with new mutual fund and ETF recommendations on Thursday, March 28. Learn more about AlphaProfit's Free and Premium Service investment newsletters.

Recent MoneyMatters Blog Posts