Fidelity Investments offers sector funds under the Fidelity Select fund umbrella. We prefer these Fidelity sector funds for the following reasons:
Fidelity Sector Fund Choices
After pioneering the sector investing concept in 1981, Fidelity Investments has expanded the Fidelity Select funds to span 7 sector groups. Each sector group has one broad sector fund and several industry-specific funds. In all, we have 41 Fidelity Select Funds to choose from.
Active Management of Mutual Funds
Rather than track sector-specific indexes, Fidelity sector fund managers actively seek to invest their fund’s assets in the best ideas within their universe. Fidelity Investments employs a staff of over 600 portfolio managers, analysts, and traders world-wide to conduct research and develop investment ideas for managing the Fidelity mutual funds.
Multiple Account Types
Fidelity sector funds are available for regular and retirement accounts. The retirement account may be a Fidelity IRA account such as Roth IRA, Rollover IRA or self directed IRA account. Fidelity sector funds are available for Fidelity SEP-IRA or Fidelity Keogh accounts as well. Fidelity sector funds may also be available in a Fidelity 401k account if your employer sponsored 401k plan has this option. Fidelity 401k investments can be conveniently managed using Fidelity Netbenefits.
Low Minimum Investment
The minimum investment required to open a regular or IRA account in any Fidelity Select fund is $2,500. The minimum investment required to open a SEP-IRA or Keogh account in any Fidelity Select fund is $500.
Fidelity mutual funds are no-load funds. Further, for the Fidelity sector funds there are no fees for exchanges done through the Internet when the investment is held over 30 days. This works to our advantage since our holding duration for sector fund investments is typically 6 months or longer. (Note: The Fidelity Select fund prospectus provides a description of the fees & expenses associated with these funds. Read the fund prospectus carefully before investing.)