Is Fidelity Advisor Technology A (FADTX) a good mutual fund choice right now?
IIf you’re looking for mutual fund equity report funds, a place to start might be Fidelity Advisor Technology A (FADTX). FADTX 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 FADTX. Since Fidelity Advisor Technology A debuted in September 1996, FADTX has accumulated over $2.03 billion in assets. The current fund manager, Adam Benjamin, has been in charge of the fund since July 2020.
Clearly, what investors are looking for in these funds is strong performance relative to their peers. This fund generated a 5-year annualized total return of 34.02% and is in the top third of its peers in the category. But if you’re looking for a shorter time frame, it’s also worth looking at its 3-year annualized total return of 46.43%, 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. The standard deviation of FADTX over the past three years is 20.88% compared to the category average of 16.37%. The fund’s standard deviation over the last 5 years is 19.75% compared to the category average of 14.02%. This makes the fund more volatile than its peers over the past half-decade.
With a 5-year beta of 1.12, the fund should be more volatile than the market average. Another factor to consider is alpha, as it reflects the performance of a portfolio on a risk-adjusted basis relative to a benchmark, in this case the S&P 500. Over the past 5 years, the fund has a positive alpha of 11.78. This means that the managers of this portfolio are adept at choosing securities that generate returns superior to those of the benchmark index.
For investors, it is essential to take a closer look at the cost parameters, 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, FADTX is a load fund. It has an expense ratio of 0.98% compared to the category average of 1.35%. Cost-wise, FADTX is actually cheaper than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Overall, Fidelity Advisor Technology A (FADTX) has a high ranking for Zacks Mutual Funds, and in conjunction with its relatively strong performance, worse downside risk, and lower fees, this fund seems like a good one. potential choice for investors right 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 Rankings and comprehensive suite of tools we make available to both novice and professional investors.
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