Headquartered in Boston, MA, Fidelity Investments currently has more than 43 million individual investors. Fidelity Investments is one of the most trusted investment management companies in the world since its inception in 1946. The company presently employs more than 70,000 associates in nine countries across North America, Europe, Asia and Australia. As of Jun 30, 2023, Fidelity Investments held $11.7 trillion in assets under administration.
Fidelity offers a large family of mutual funds with an expert fund management teamin various asset classes to choose from based on individual risk appetite. The company sells its mutual fund products directly to its clients, which results in zero load charges.
Fidelity mutual funds are compelling investment choices since they have given a positive return and are expected to perform well in 2023 and beyond. We have thus selected three fidelity mutual funds that have wide exposure in sectors like energy and technology, which have not only preserved investors’ wealth but also generated an excellent return amid volatile market conditions.
The Oil sector is expected to perform well in response to OPEC+ members’ decision to cut oil supply by 1.3 million barrels per day till the end of 2023 and depleting U.S. oil reserves. The price of oil is hovering around $95 per barrel and analysts are expecting it to reach $100/barrel. Also, adoption and evolution in artificial intelligence and machine learning are expected to change the face of many industries in the coming years, thereby increasing profitability. The Federal Reserve has hinted at an end to the monetary tightening campaign in the near future. Such moves will be added positives for the industry in the long run.
These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, and 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.
Fidelity Select Energy FSENX fund invests most of its net assets in common stocks of domestic and foreign companies that areprincipally engaged in the energy field, including the conventional areas of oil, gas, electricity, and coal, and newer sources of energy such as nuclear, geothermal, oil shale, and solar power. FSENX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.
Maurice FitzMaurice has been the lead manager of FSENX since Dec 31, 2019. Most of the fund’s exposure is in companies like Exxon Mobil (24.9%), Chevron (6.9%) and ConocoPhillips (4.9%) as of 5/31/2023.
FSENX’s three-year and five-year annualized returns are almost 44.4% and 7.2%, respectively. FSENX has an annual expense ratio of 0.73%, which is less than the category average of 1.07%.
To see how this fund performed compared in its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.
Fidelity Select Semiconductors Portfolio FSELX fund invests most of its net assets in common stocks of domestic and foreign companies that areprincipally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FSELX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.
Adam Benjamin has been the lead manager of FSELX since Mar 15, 2020. Most of the fund’s exposure is in companies like NVIDIA (32.2%), Marvell Technology (8.3%) and NXP Semiconductors (8.1%) as of 5/31/2023.
FSELX’s three-year and five-year annualized returns are almost 30.4% and 27.6%, respectively. FSELX has an annual expense ratio of 0.69%, which is less than the category average of 1.05%.
Fidelity Advisor Technology Fund FATIX invests most of its net assets in common stocks of domestic and foreign companies that are principally engaged in offering, using, or developing products, processes, or services that will provide or benefit significantly from technological advances and improvements. FATIX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.
Adam Benjamin has been the lead manager of FATIX since Jul 19, 2020, and most of the fund’s exposure is in companies like Apple (20.7%), Microsoft (16.7%) and NVIDIA (10.3%) as of 4/30/2023.
FATIX three-year and five-year annualized returns are 11.2% and 18.9%, respectively. FATIX has an annual expense ratio of 0.72% compared to the category average of 1.05%.
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