5 Best Fidelity Mutual Funds to Buy in 2023

This post was originally published on this site

Fidelity Investment, founded in 1946, is one of the oldest and most trusted mutual fund companies in the world, with over 40 million individual investors and $9.6 trillion of assets under administration as of Sep 30, 2022. Headquartered in Boston, the company has more than 57000 associates and has a global presence in North America, Europe, Asia and Australia.

The company provides classiest-in-the-class financial planning, advisory services, retirement planning wealth management, brokerage services, and college services for individual investors. Under the name Fidelity ZERO, the company sells its mutual fund products directly to its clients, with zero load charges on selected funds.

During the present challenging market conditions across the world due to high inflation, geo-political tensions in the east, and continued mutation of the COVID-19 variant, indexes like the S&P 500, the Dow, and the Nasdaq have posted negative returns of 17.8%, 7.13%, and 29.27%, respectively, in the past year. Compared with the broader markets, the below-mentioned funds have given a positive return and are expected to perform well in 2023 and beyond.

We have thus selected five Fidelity mutual funds that have not only preserved investors’ wealth but also generated higher returns during such adverse market conditions. Moreover, we expect them to perform well in the long term. These funds have the majority of their investments in sectors such as retail trade, industry cyclical, finance, non-durables, services, technology and health.

These funds boast a Zacks Mutual Fund Rank #2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio compared to the category average. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Fidelity Select Construction and Housing Portfolio FSHOX invests most of its net assets in securities of domestic and foreign companies that are engaged in the design and construction of residential, commercial, industrial, and public works facilities, as well as companies engaged in the manufacture, supply, distribution, or sale of construction and housing products or services. FSHOX advisors choose to invest in stocks based on fundamental analysis such as financial condition, industry position, as well as market and economic conditions.

Jordan Michaels has been the lead manager of FSHOX since Sep 7, 2021. Most of the fund’s exposure is in sectors like retail trade (44.23%), industry cyclical (17.64%) and finance (15.90%) as of 11/30/2022.

FSHOX’s three-year and five-year annualized returns are almost 16.4% and 14.2%, respectively. FSHOX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.76%, which is less than the category average of 0.79%.

To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.

Fidelity Select Brokerage & Investment FSLBX invests most of its net assets in securities of companies engaged in the exchange of financial instruments, stock brokerage, commodity brokerage, investment banking, tax-advantaged investment or investment sales, investment management, or related investment advisory and financial decision support services. FSLBX advisors invest in both domestic and foreign companies.

Charlie Ackerman has been the lead manager of FSLBX since Nov 1, 2018, and most of the fund’s exposure is in sectors like finance (87.56%), non-durable (5.98%) and services (3.45%) as of 11/30/2022.

FSLBX’s three-year and five-year annualized returns are almost 15.3% and 11.7%, respectively. FSLBX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.74%, which is less than the category average of 1.08%.

Fidelity Advisor Equity Growth Fund EQPGX invests most of its net assets in common stocks of domestic and foreign companies that its advisor believes have above-average growth potential. EQPGX advisors choose to invest in stocks based on fundamental analysis such as financial condition, industry position, as well as market and economic conditions.

Jason Weiner has been the lead manager of EQPGX since Nov 9, 2006, and most of the fund’s exposure is in sectors like technology (39.48%), finance (11.99%) and health (8.58%) as of 11/30/2022.

EQPGX’s three-year and five-year annualized returns are almost 13.9% and 13.7%, respectively. EQPGX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.71% compared to the category average of 0.99%.

Fidelity Small Cap Value Fund FCPVX invests most of its net assets in common stocks of domestic and foreign small-cap value stocks. FCPVX advisors choose to invest in companies that Fidelity Management & Research Company LLC (FMR) believes are undervalued in relation to factors such as assets, sales, earnings, growth potential, or cash flow, or in relation to securities of other companies in the same industry.

Derek Janssen has been the lead manager of FCPVX since Feb 2, 2021, and most of the fund’s exposure is in sectors like finance (32.99%), retail trade (12.39%) and industry cyclical (10.35%) as of 11/30/2022.

FCPVX’s three-year and five-year annualized returns are almost 13.0% and 7.4%, respectively. FCPVX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.98% compared to the category average of 1.16%.

Fidelity Advisor Growth & Income Fund FGITX invests most of its net assets in common stocks of domestic and foreign companies that pay current dividends and have the potential for capital appreciation. FGITX advisors also invest in bonds, including lower-quality debt securities, along with stocks with prospects for future income or capital appreciation.

Matthew W. Fruhan has been the lead manager of FGITX since Feb 4, 2011, and most of the fund’s exposure is in sectors like technology (21.07%), finance (20.36%) and industry cyclical (13.70%) as of 11/30/2022.

FGITX’s three-year and five-year annualized returns are almost 10.9% and 9.8%, respectively. FGITX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.67% compared to the category average of 0.94%.

Want key mutual fund info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>

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 (FSLBX): Fund Analysis Report

Get Your Free (EQPGX): Fund Analysis Report

Get Your Free (FCPVX): Fund Analysis Report

Get Your Free (FSHOX): Fund Analysis Report

Get Your Free (FGITX): Fund Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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