Fidelity Asset Manager 40% (FFANX) shows mixed performance and lower fees, making it a decent option for investors.
FFANX is part of the Allocation Balanced category, which means it invests in a mix of assets like stocks and bonds. These funds are great for those looking to diversify their investments without going overboard. They can be a solid starting point for anyone wanting to dip their toes into mutual funds.
Fidelity, based in Boston, launched FFANX back in October 2007. The fund has grown to about $1.5 billion in assets, and it’s managed by Avishek Hazrachoudhury since April 2018.
When it comes to performance, FFANX has a 5-year annualized return of 4.78%, putting it in the top third of its peers. If you look at the 3-year return, it’s at 1.12%, which is more average. Just keep in mind that returns can be affected by fees, which aren’t always included in the total return figures.
Another thing to consider is volatility. FFANX has a lower standard deviation compared to its peers, meaning it’s less volatile. Over the past three years, its standard deviation was 9.88%, while the category average was 13.6%.
On the risk side, FFANX has a 5-year beta of 0.51, indicating it’s less volatile than the market. However, it has a negative alpha of -3.78, suggesting the fund managers have struggled to outperform the benchmark.
When it comes to costs, FFANX is a no-load fund with an expense ratio of 0.51%, which is lower than the category average of 0.91%. Plus, there’s no minimum investment required, making it accessible for many investors.
In summary, Fidelity Asset Manager 40% (FFANX) has a neutral Zacks rank. With decent performance, average risk, and lower fees, it’s a fair choice for investors looking for a balanced fund right now. If you want to explore more about mutual funds, check out Zacks’ tools for additional insights.