Maximize Your Returns and Minimize Risks
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:
AlphaProfit Core Portfolio
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.