Is Fidelity Select Consumer Staples (FDFAX) a Strong Mutual Fund Pick Right Now?

If you've been stuck searching for Sector - Other funds, consider Fidelity Select Consumer Staples (FDFAX) as a possibility. FDFAX has a Zacks Mutual Fund Rank of 2 (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 FDFAX. The Fidelity Select Consumer Staples made its debut in July of 1985 and FDFAX has managed to accumulate roughly $743.35 million in assets, as of the most recently available information. The fund's current manager, Ben Shuleva, has been in charge of the fund since January of 2020.PerformanceOf course, investors look for strong performance in funds. FDFAX has a 5-year annualized total return of 9.05% and it sits in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 3.61%, which places it in the bottom 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. Compared to the category average of 14.22%, the standard deviation of FDFAX over the past three years is 14.04%. The standard deviation of the fund over the past 5 years is 15.29% compared to the category average of 15.44%. This makes the fund less volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 0.64, so it is likely going to be less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a negative alpha of -2.15, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.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, FDFAX is a no load fund. It has an expense ratio of 0.68% compared to the category average of 0.94%. From a cost perspective, FDFAX is actually cheaper than its peers.Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, Fidelity Select Consumer Staples ( FDFAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Fidelity Select Consumer Staples ( FDFAX ) looks like a great potential choice for investors right now.For additional information on the Sector - Other area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into FDFAX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them 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 (FDFAX): 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