Is Fidelity Capital Appreciation (FDCAX) a Strong Mutual Fund Pick Right Now?

There are plenty of choices in the Index category, but where should you start your research? Well, one fund that might be worth investigating is Fidelity Capital Appreciation (FDCAX). FDCAX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.History of Fund/ManagerFidelity is based in Boston, MA, and is the manager of FDCAX. Since Fidelity Capital Appreciation made its debut in November of 1986, FDCAX has garnered more than $7.01 billion in assets. The fund is currently managed by Zachary Turner who has been in charge of the fund since April of 2025.PerformanceOf course, investors look for strong performance in funds. FDCAX has a 5-year annualized total return of 16.18%, 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 23.71%, which places it in the bottom 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, FDCAX's standard deviation comes in at 14.05%, compared to the category average of 14.33%. Looking at the past 5 years, the fund's standard deviation is 16.4% compared to the category average of 16.41%. This makes the fund less volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 1.01, the fund is likely to be as volatile as 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. Over the past 5 years, the fund has a negative alpha of -1.26. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.HoldingsExamining 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.As of the last filing date, the mutual fund has 89.89% of its assets in stocks, and these companies have an average market capitalization of $608.25 billion. The fund has the heaviest exposure to the following market sectors:TechnologyFinanceWith turnover at about 52%, this fund makes more trades in a given year than the category average.ExpensesCosts 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, FDCAX is a no load fund. It has an expense ratio of 0.61% compared to the category average of 0.94%. From a cost perspective, FDCAX 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 consideration. Returns would be less if those were included.Bottom LineOverall, Fidelity Capital Appreciation ( FDCAX ) 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 FDCAX? 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. 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