Is Fidelity Select Automotive (FSAVX) a good mutual fund choice right now?

IIf investors are looking at the Mutual Fund Equity Report fund category, Fidelity Select Automotive (FSAVX) could be a potential option. FSAVX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine predictor factors such as size, cost, and past performance.

Fund/manager history

Fidelity is based in Boston, MA, and is the manager of FSAVX. Fidelity Select Automotive debuted in June 1986, and since then FSAVX has accumulated approximately $244.23 million in assets, according to the most recent date available. Elliot Mattingly is the current fund manager and has held the position since April 2017.

Performance

Of course, investors are looking for strong performance in funds. This fund has generated a 5-year annualized total return of 23.69% and is in the top third of its peers in the category. Investors who prefer to analyze shorter time frames should look at its 3-year annualized total return of 39.27%, 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. FSAVX’s standard deviation over the past three years is 27.63% from the category average of 23.25%. The fund’s standard deviation over the last 5 years is 23.17% compared to the category average of 20.21%. This makes the fund more volatile than its peers over the past half-decade.

Risk factors

With a 5-year beta of 1.28, the fund should be more volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio’s performance on a risk-adjusted basis against a benchmark – in this case, the S&P 500. FSAVX’s 5-year performance produced a positive alpha of 1.06, which means that the managers of this portfolio are adept at choosing stocks that generate higher returns than those of the benchmark index.

Expenses

As competition intensifies in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low cost product will perform better, all other things being equal. Thus, it is essential for investors to take a closer look at the cost parameters. In terms of fees, FSAVX is a no-load fund. It has an expense ratio of 0.78% compared to the category average of 1.21%. Cost-wise, FSAVX is actually cheaper than its peers.

Although the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.

Conclusion

Overall, Fidelity Select Automotive (FSAVX) has a high ranking for Zacks Mutual Funds and, in conjunction with its relatively strong performance, medium downside risk and low fees, this fund seems like a good potential choice. for investors right now.

Don’t stop here for your fund research on the Mutual Fund Stock Report. We also have a lot more on our site to help you find the best possible fund for your portfolio. Be sure to check out www.zacks.com/funds/mutual-funds for more insight into the world of funds, and feel free to compare FSAVX to its peers as well for additional information. Want to know more ? We have a full suite of stock tools that you can also use to find the best picks for your portfolio, no matter what type of investor you are.

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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