Is Fidelity Select Consumer Discretion (FSCPX) a Strong Mutual Fund Pick Right Now?

Zacks Equity Research

If you've been stuck searching for Sector - Other funds, consider Fidelity Select Consumer Discretion (FSCPX) as a possibility. FSCPX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

FSCPX is a part of the Fidelity family of funds, a company based out of Boston, MA. The Fidelity Select Consumer Discretion made its debut in June of 1990 and FSCPX has managed to accumulate roughly $406.35 million in assets, as of the most recently available information. The fund's current manager, Katherine Shaw, has been in charge of the fund since August of 2017.

Performance

Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 8.3%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 10.65%, 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. The standard deviation of FSCPX over the past three years is 15.27% compared to the category average of 15.21%. The fund's standard deviation over the past 5 years is 13.91% compared to the category average of 15.03%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. FSCPX lost 49.62% in the most recent bear market and outperformed its peer group by 0%. These results could imply that the fund is an on par choice than its peers during a sliding market environment.

Nevertheless, investors should also note that the fund has a 5-year beta of 1.04, which means it is hypothetically more 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. With a negative alpha of -1.02, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

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, FSCPX is a no load fund. It has an expense ratio of 0.76% compared to the category average of 1.30%. Looking at the fund from a cost perspective, FSCPX is actually cheaper than its peers.

This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.

Bottom Line

Overall, Fidelity Select Consumer Discretion ( FSCPX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Select Consumer Discretion ( FSCPX ) looks like a good potential choice for investors right now.

Want even more information about FSCPX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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.


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