Is Fidelity Advisor Semiconductors A (FELAX) a good mutual fund choice right now?

IIf investors are looking at the Mutual Fund Equity Report fund category, Fidelity Advisor Semiconductors A (FELAX) could be a potential option. FELAX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine predictor factors such as size, cost, and past performance.

Fund/manager history

FELAX is part of the Fidelity family, based in Boston, MA. Fidelity Advisor Semiconductors A debuted in December 2000 and FELAX has managed to accumulate approximately $376.87 million in assets, according to the most recent information available. Adam Benjamin is the current fund manager and has held the position since March 2020.

Performance

Of course, investors are looking for strong performance in funds. This fund has generated a 5-year annualized total return of 28.4% and ranks in the top third of its peers in its category. If you’re interested in shorter timeframes, don’t discount the fund’s 3-year annualized total return of 38.54%, which puts it in the top third over that time frame.

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. FELAX’s standard deviation over the past three years is 26.8% compared to the category average of 16.26%. Looking back over the past 5 years, the fund’s standard deviation is 24.51% compared to the category average of 14.53%. This makes the fund more volatile than its peers over the past half-decade.

Risk factors

The fund has a 5-year beta of 1.23, so investors should note that it is hypothetically more 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. FELAX generated alpha positive over the past five years by 9.02 , demonstrating that the managers of this portfolio know how to choose securities that generate higher returns than those of the benchmark index.

Expenses

For investors, it is essential to take a closer look at cost-related metrics, as costs are increasingly important for mutual fund investments. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FELAX is a load fund. It has an expense ratio of 1.03% compared to the category average of 1.29%. Thus, FELAX is actually cheaper than its peers from a cost perspective.

Investors should also note that the minimum initial investment for the product is $0 and each subsequent investment has no minimum amount.

Conclusion

Overall, Fidelity Advisor Semiconductors A (FELAX) has a high ranking in Zacks Mutual Fund, and in conjunction with its relatively strong performance, worse downside risk and lower fees, Fidelity Advisor Semiconductors A (FELAX ) seems like a good potential choice for investors. now.

For more information on this product or to compare it to other mutual funds in the Mutual Fund Stock Report, go to www.zacks.com/funds/mutual-funds for more information. information. If you’re more of an equity investor, be sure to also check out our Zacks Ranking and our comprehensive suite of tools we make available to both novice and professional investors.

Just Released: Zacks’ 7 Best Stocks For Today

Experts have pulled 7 stocks from the Zacks #1 220 Strong Buys list that have beaten the market more than 2 times with an astonishing average gain of +25.4% per year.

These 7s were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>

Click to get this free report

Get Your Free (FELAX): 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.

Dolores W. Simon