Fidelity Stock Selector Allocation Cap (FDSSX) shows promise as a mutual fund pick with solid performance and lower fees
FDSSX is part of the Large Cap Growth category, which is filled with options. These funds typically invest in large U.S. companies expected to grow faster than other large-cap stocks. To qualify as large-cap, a company needs a market cap over $10 billion.
This fund has been around since September 1990 and is part of the Fidelity family, based in Boston. It has over $2.41 billion in assets, and Christopher Lee has been managing it since February 2023.
When it comes to performance, FDSSX has a 5-year annualized total return of 13.48%, placing it in the middle third of its peers. If you look at a shorter time frame, its 3-year annualized return is 6.98%, which is also in the middle third.
Keep in mind that the returns might not include all expenses, and any fees not reflected could lower those returns. The fund’s standard deviation over the past three years is 17.42%, which is higher than the category average of 14.71%. This means it’s a bit more volatile than its peers.
The fund has a 5-year beta of 1.02, indicating it’s as volatile as the market. It also has a negative alpha of -1.05, suggesting the managers are struggling to pick securities that outperform the benchmark, which is the S&P 500.
In terms of expenses, FDSSX is a no-load fund with an expense ratio of 0.45%, lower than the category average of 0.92%. This makes it a more cost-effective option compared to its peers. Plus, there’s no minimum initial investment required.
Overall, Fidelity Stock Selector Allocation Cap (FDSSX) has a strong Zacks Mutual Fund rank, decent performance, average risk, and lower fees, making it a solid choice for investors right now. If you’re interested in exploring more about Large Cap Growth funds, check out Zacks.com for additional tools and insights.
