Is Fidelity Select Portfolio Medical Technology and Devices (FSMEX) a Strong Mutual Fund Pick Right Now?

If you have been looking for Sector - Health funds, a place to start could be Fidelity Select Portfolio Medical Technology and Devices (FSMEX). FSMEX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveThe world of Sector - Health funds is an area filled with options, such as FSMEX. Healthcare is one of the biggest sectors of the American economy, and Sector - Health mutual funds provide a great opportunity to invest in this industry. Here, funds can include everything from for-profit hospitals to pharmaceutical companies and medical device manufacturers.History of Fund/ManagerFidelity is based in Boston, MA, and is the manager of FSMEX. Since Fidelity Select Portfolio Medical Technology and Devices made its debut in April of 1998, FSMEX has garnered more than $5.12 billion in assets. Edward Yoon is the fund's current manager and has held that role since May of 2007.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 7.66%, and it sits in the bottom 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 -6.98%, 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. FSMEX's standard deviation over the past three years is 20.63% compared to the category average of 17.2%. Over the past 5 years, the standard deviation of the fund is 20.41% compared to the category average of 17.63%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 0.91, which means it is hypothetically less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. FSMEX's 5-year performance has produced a negative alpha of -5.09, which means 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, FSMEX is a no load fund. It has an expense ratio of 0.63% compared to the category average of 1.12%. FSMEX is actually cheaper than its peers when you consider factors like cost.Investors need to be aware that with this product, the minimum initial investment is $0; 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, even with its comparatively weak performance, average downside risk, and lower fees, Fidelity Select Portfolio Medical Technology and Devices ( FSMEX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.Don't stop here for your research on Sector - Health funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FSMEX to its peers as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.Free Report: 5 Clean Energy Stocks with Massive UpsideEnergy is the backbone of our economy. It’s a multi-trillion dollar industry that has created some of the world’s largest and most profitable companies.Now state-of-the-art technology is paving the way for clean energy sources to overtake “old-fashioned” fossil fuels. 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