Any investors hoping to find a Mutual Fund Equity Report fund could think about starting with Fidelity Mid-Cap Stock Fund (FMCSX). FMCSX carries 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/Manager
FMCSX is a part of the Fidelity family of funds, a company based out of Boston, MA. Fidelity Mid-Cap Stock Fund made its debut in March of 1994, and since then, FMCSX has accumulated about $6.68 billion in assets, per the most up-to-date date available. The fund’s current manager, Nicola Stafford, has been in charge of the fund since July of 2017.
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FMCSX has a 5-year annualized total return of 9.5% 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 10.32%, which places it in the top third during this time-frame.
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 20.35%, the standard deviation of FMCSX over the past three years is 23.43%. Over the past 5 years, the standard deviation of the fund is 19.85% compared to the category average of 17.93%. This makes the fund more volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 0.98, so it is likely going to be as volatile as 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. The fund has produced a positive alpha over the past 5 years of 0.59, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Examining 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 mostly on equities that are traded in the United States.
Right now, 82.93% of this mutual fund’s holdings are stocks, which have an average market capitalization of $16.34 billion. The fund has the heaviest exposure to the following market sectors:
- Industrial Cyclical
Turnover is 17%, which means, on average, the fund makes fewer trades than the average comparable fund.
Costs 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, FMCSX is a no load fund. It has an expense ratio of 0.87% compared to the category average of 0.98%. FMCSX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Overall, Fidelity Mid-Cap Stock Fund ( FMCSX ) 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 FMCSXin the Mutual Fund Equity Report 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. Zacks provides a full suite of tools to help you analyze your portfolio – both funds and stocks – in the most efficient way possible.