Is Fidelity Select Health Care (FSPHX) a good mutual fund choice right now?
Mutual Fund Equity Report fund seekers should consider taking a look at Fidelity Select Health Care (FSPHX). FSPHX carries a Zacks mutual fund rating of 1 (Strong Buy), which is based on nine predictor factors such as size, cost and past performance.
Fidelity is based in Boston, MA, and is the manager of FSPHX. Fidelity Select Health Care got its start in July 1981. Since then, FSPHX has accumulated assets of approximately $10.75 billion, according to the most recent information available. Edward Yoon is the current manager of the fund and has held this position since October 2008.
Investors are naturally looking for high performance funds. This fund has a 5-year annualized total return of 19.43% and is in the top third of its peers in the category. Investors who prefer to analyze shorter timeframes should look at its 3-year annualized total return of 22.18%, which puts it in the top third over this period.
When looking at a fund’s performance, it’s also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of FSPHX over the past three years is 16.64% compared to the category average of 17.98%. Looking at the past 5 years, the standard deviation of the fund is 16.36% compared to the category average of 17.17%. This makes the fund less volatile than its peers over the past half-decade.
The fund has a 5-year beta of 0.82, so investors should note that it is hypothetically less volatile than the market as a whole. Alpha is an additional metric to consider, as it represents the performance of a portfolio on a risk-adjusted basis relative to a benchmark, which in this case is the S&P 500. FSPHX generated alpha positive over the past five years by 4.13 , demonstrating that the managers of this portfolio know how to choose securities that generate higher returns than those of the benchmark index.
Costs are increasingly important for investing in mutual funds, especially as competition intensifies in this market. And all other things being equal, a lower-cost product will outperform its otherwise identical counterpart, so it’s essential for investors to take a closer look at these metrics. In terms of fees, FSPHX is a no-load fund. It has an expense ratio of 0.67% compared to the category average of 1.30%. Cost-wise, FSPHX is actually cheaper than its peers.
Investors should be aware that with this product the minimum initial investment is $0; each subsequent investment has no minimum amount.
Overall, Fidelity Select Health Care (FSPHX) has a high ranking for Zacks Mutual Funds and, in conjunction with its relatively strong performance, medium downside risk and lower fees, Fidelity Select Health Care (FSPHX ) seems like a good potential choice for investors. now.
Your search for the Mutual Fund Stock Report segment doesn’t have to stop there. You can check out all of the great mutual fund tools we offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well as additional information. Zacks provides a full suite of tools to help you analyze your portfolio – funds and stocks – in the most efficient way possible.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know our top 10 buy and hold tickers for all of 2022?
Last year 2021 Zacks Top 10 Stocks the portfolio generated gains as high as +147.7%. Now, a brand new portfolio has been selected from over 4,000 companies covered by the Zacks ranking. Don’t miss your chance to participate in this long term shopping
Access the Top 10 Zacks Stocks for 2022 today >>
Click to get this free report
Get Your Free (FSPHX): Fund Analysis Report
To read this article on Zacks.com, click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.