Is Fidelity Select Natural Resources (FNARX) a good mutual fund choice right now?

HHaving trouble finding a mutual fund equity ratio fund? Fidelity Select Natural Resources (FNARX) is a potential starting point. FNARX 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

Fidelity is responsible for FNARX and the company is based in Boston, MA. Fidelity Select Natural Resources debuted in March 1997 and FNARX has managed to accumulate approximately $773.90 million in assets, according to the most recent information available. The fund is currently managed by Ashley Fernandes who has been in charge of the fund since January 2021.

Performance

Clearly, what investors are looking for in these funds is strong performance relative to their peers. This fund has a 5-year annualized total return of 7.29% and ranks 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 12.66%, 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. FNARX’s standard deviation over the past three years is 36.39% compared to the category average of 43.92%. The fund’s standard deviation over the last 5 years is 31.12% compared to the category average of 37.51%. This makes the fund less volatile than its peers over the past half-decade.

Risk factors

Investors should note that the fund has a 5-year beta of 1.34, which means it is hypothetically more volatile than the market as a whole. Since alpha represents the performance of a portfolio on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, it is also worth paying attention to this measure. With a negative alpha of -6.48, the managers of this portfolio find it difficult to select stocks that generate returns above the benchmark.

Expenses

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, FNARX is a no-fee fund. It has an expense ratio of 0.81% compared to the category average of 1.43%. Looking at the fund from a cost perspective, FNARX is actually cheaper than its peers.

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 Select Natural Resources (FNARX) has a high ranking for Zacks Mutual Funds, and in conjunction with its relatively strong performance, better downside risk and lower fees, this fund seems like a good one. 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 information on the world of funds, and feel free to compare FNARX to its peers for more information. For analysis of the rest of your portfolio, be sure to visit Zacks.com for our comprehensive suite of tools that will help you investigate all of your stocks and funds in one place.

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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