Is Fidelity Advisor Semiconductors A (FELAX) a Strong Mutual Fund Pick Right Now?

Have you been searching for a Sector - Tech fund? You might want to begin with Fidelity Advisor Semiconductors A (FELAX). FELAX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.ObjectiveThe 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/ManagerFidelity is based in Boston, MA, and is the manager of FELAX. Since Fidelity Advisor Semiconductors A made its debut in December of 2000, FELAX has garnered more than $1.68 billion in assets. Adam Benjamin is the fund's current manager and has held that role since March of 2020.PerformanceOf course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 33.55%, 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 54.61%, 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. FELAX's standard deviation over the past three years is 31.59% compared to the category average of 12.85%. The fund's standard deviation over the past 5 years is 33.14% compared to the category average of 13.29%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 1.64, which means it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a positive alpha over the past 5 years of 9.82, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.ExpensesFor 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, FELAX is a load fund. It has an expense ratio of 0.94% compared to the category average of 0.93%. FELAX is actually more expensive than its peers when you consider factors like cost.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 consideration. Returns would be less if those were included.Bottom LineOverall, even with its comparatively strong performance, worse downside risk, and higher fees, Fidelity Advisor Semiconductors A ( FELAX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.For additional information on the Sector - Tech area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into FELAX too 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.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (FELAX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks