If investors are looking at the Sector - Tech fund category, Fidelity Advisor Semiconductors A (FELAX Quick QuoteFELAX - Free Report) could be a potential option. FELAX possesses 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 Sector - Tech funds is an area filled with options, and FELAX is one of them. Sector - Tech mutual funds allow investors to own a stake in a notoriously volatile sector with a much more diversified approach. Tech companies can be in any number of industries such as semiconductors, software, internet, networking just to name a few.

History of Fund/Manager

FELAX is a part of the Fidelity family of funds, a company based out of Boston, MA. Since Fidelity Advisor Semiconductors A made its debut in December of 2000, FELAX has garnered more than $1.08 billion in assets. Adam Benjamin is the fund's current manager and has held that role since March of 2020.

Performance

Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 33.61%, and it sits 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 26.16%, 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. Over the past three years, FELAX's standard deviation comes in at 37.97%, compared to the category average of 16.64%. The fund's standard deviation over the past 5 years is 32.32% compared to the category average of 17.11%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.41, 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. FELAX's 5-year performance has produced a positive alpha of 12.78, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FELAX is a load fund. It has an expense ratio of 0.99% compared to the category average of 1.01%. From a cost perspective, FELAX is actually cheaper than its peers.

While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.

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

Bottom Line

Overall, Fidelity Advisor Semiconductors A ( FELAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

Your research on the Sector - Tech segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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.