Having trouble finding a Small Cap Growth fund? Fidelity Small Cap Growth (FCPGX Quick QuoteFCPGX - Free Report) is a potential starting point. FCPGX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

The world of Small Cap Growth funds is an area filled with options, such as FCPGX. These funds tend to create their portfolios around stocks that sport large growth opportunities and market capitalization of less than $2 billion. The companies in these portfolios are usually on the smaller side, and are in up-and-coming industries and markets.

History of Fund/Manager

FCPGX is a part of the Fidelity family of funds, a company based out of Boston, MA. Since Fidelity Small Cap Growth made its debut in November of 2004, FCPGX has garnered more than $3.19 billion in assets. Patrick Venanzi is the fund's current manager and has held that role since November of 2011.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 10.82%, 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 1.97%, which places it in the top third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

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 FCPGX over the past three years is 22.02% compared to the category average of 1%. Looking at the past 5 years, the fund's standard deviation is 22.43% compared to the category average of 10%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.09, so it is likely going to be more volatile than 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. With a negative alpha of -3.96, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Exploring 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 primarily on equities that are traded in the United States.

This fund is currently holding about 89.66% in stocks, which have an average market capitalization of $7.14 billion. The fund has the heaviest exposure to the following market sectors:

• Technology
• Health
• Industrial Cyclical

Turnover is about 83%, so those in charge of the fund make more trades in a given year than the average of comparable funds.

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, FCPGX is a no load fund. It has an expense ratio of 1.01% compared to the category average of 59%. Looking at the fund from a cost perspective, FCPGX is actually cheaper than its peers.

Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Fidelity Small Cap Growth ( FCPGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Fidelity Small Cap Growth ( FCPGX ) looks like a good potential choice for investors right now.

Want even more information about FCPGX? 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. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.