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Is Fidelity Growth Strategies Fund (FDEGX) a Strong Mutual Fund Pick Right Now?
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Any investors hoping to find an All Cap Growth fund could think about starting with Fidelity Growth Strategies Fund (FDEGX - Free Report) . FDEGX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FDEGX is part of the All Cap Growth category, which is a segment that boasts an array of other possible options. All Cap Growth mutual funds aim to invest in various equity securities, regardless of company size that exhibit growth characteristics. These portfolios have holdings across the cap levels-- small, medium and large-cap-- in order to increase diversification throughout the fund.
History of Fund/Manager
FDEGX is a part of the Fidelity family of funds, a company based out of Boston, MA. Since Fidelity Growth Strategies Fund made its debut in December of 1990, FDEGX has garnered more than $2.99 billion in assets. The fund is currently managed by Shilpa Mehra who has been in charge of the fund since May of 2024.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 11.28%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 0.59%, 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 FDEGX over the past three years is 21.85% compared to the category average of 18.12%. Looking at the past 5 years, the fund's standard deviation is 20.96% compared to the category average of 18.77%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.07, the fund is likely to be more volatile than the market average. 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. The fund has produced a negative alpha over the past 5 years of -4.41, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining 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 principally on equities that are traded in the United States.
As of the last filing date, the mutual fund has 76.8% of its assets in stocks, with an average market capitalization of $38.91 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
Industrial Cyclical
Finance
Turnover is about 70%, so those in charge of the fund make more trades in a given year than the category average.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FDEGX is a no load fund. It has an expense ratio of 0.80% compared to the category average of 1%. So, FDEGX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $0 and that 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 Growth Strategies Fund ( FDEGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Want even more information about FDEGX? 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. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is Fidelity Growth Strategies Fund (FDEGX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find an All Cap Growth fund could think about starting with Fidelity Growth Strategies Fund (FDEGX - Free Report) . FDEGX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FDEGX is part of the All Cap Growth category, which is a segment that boasts an array of other possible options. All Cap Growth mutual funds aim to invest in various equity securities, regardless of company size that exhibit growth characteristics. These portfolios have holdings across the cap levels-- small, medium and large-cap-- in order to increase diversification throughout the fund.
History of Fund/Manager
FDEGX is a part of the Fidelity family of funds, a company based out of Boston, MA. Since Fidelity Growth Strategies Fund made its debut in December of 1990, FDEGX has garnered more than $2.99 billion in assets. The fund is currently managed by Shilpa Mehra who has been in charge of the fund since May of 2024.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 11.28%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 0.59%, 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 FDEGX over the past three years is 21.85% compared to the category average of 18.12%. Looking at the past 5 years, the fund's standard deviation is 20.96% compared to the category average of 18.77%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.07, the fund is likely to be more volatile than the market average. 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. The fund has produced a negative alpha over the past 5 years of -4.41, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining 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 principally on equities that are traded in the United States.
As of the last filing date, the mutual fund has 76.8% of its assets in stocks, with an average market capitalization of $38.91 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
- Industrial Cyclical
- Finance
Turnover is about 70%, so those in charge of the fund make more trades in a given year than the category average.Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FDEGX is a no load fund. It has an expense ratio of 0.80% compared to the category average of 1%. So, FDEGX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $0 and that 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 Growth Strategies Fund ( FDEGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Want even more information about FDEGX? 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. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.