Is Fidelity Nasdaq Composite (FNCMX) a Strong Mutual Fund Pick Right Now?

If investors are looking at the Index fund category, Fidelity Nasdaq Composite (FNCMX) could be a potential option. FNCMX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.History of Fund/ManagerFidelity is based in Boston, MA, and is the manager of FNCMX. Fidelity Nasdaq Composite made its debut in September of 2003, and since then, FNCMX has accumulated about $20.60 billion in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.PerformanceOf course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 15.43%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 20.57%, which places it in the middle third during this time-frame.It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, FNCMX's standard deviation comes in at 18.59%, compared to the category average of 19.92%. The fund's standard deviation over the past 5 years is 20.01% compared to the category average of 20.13%. This makes the fund less volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 1.16, the fund is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -1.73. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.HoldingsInvestigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.Right now, 97.36% of this mutual fund's holdings are stocks, with an average market capitalization of $578.67 billion. The fund has the heaviest exposure to the following market sectors:TechnologyRetail TradeWith turnover at about 5%, this fund makes fewer trades than the average comparable fund.ExpensesAs competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FNCMX is a no load fund. It has an expense ratio of 0.29% compared to the category average of 0.93%. So, FNCMX is actually cheaper than its peers from a cost perspective.While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.Bottom LineOverall, Fidelity Nasdaq Composite ( FNCMX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.This could just be the start of your research on FNCMX in the Index category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (FNCMX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks