Is Fidelity Select Environmental & Alternative (FSLEX) a Strong Mutual Fund Pick Right Now?

Having trouble finding a Sector - Other fund? Fidelity Select Environmental & Alternative (FSLEX) is a potential starting point. FSLEX possesses 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 responsible for FSLEX, and the company is based out of Boston, MA. Fidelity Select Environmental & Alternative debuted in June of 1989. Since then, FSLEX has accumulated assets of about $548.31 million, according to the most recently available information. The fund is currently managed by William Bower who has been in charge of the fund since August of 2021.PerformanceOf course, investors look for strong performance in funds. FSLEX has a 5-year annualized total return of 12.71% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 2.36%, 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. FSLEX's standard deviation over the past three years is 20.94% compared to the category average of 22.1%. Looking at the past 5 years, the fund's standard deviation is 22.78% compared to the category average of 23.46%. This makes the fund less volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 1.17, 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 -3.55. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesCosts are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FSLEX is a no load fund. It has an expense ratio of 0.70% compared to the category average of 0.86%. So, FSLEX is actually cheaper than its peers from a cost perspective.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 Environmental & Alternative ( FSLEX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Select Environmental & Alternative ( FSLEX ) looks like a good potential choice for investors right now.Your research on the Sector - Other segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See 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 (FSLEX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks