Have you been searching for a Mutual Fund Equity Report fund? You might want to begin with Fidelity Small Cap Value (FCPVX). FCPVX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Load Error
History of Fund/Manager
Fidelity is responsible for FCPVX, and the company is based out of Boston, MA. The Fidelity Small Cap Value made its debut in November of 2004 and FCPVX has managed to accumulate roughly $2.74 billion in assets, as of the most recently available information. Derek Janssen is the fund’s current manager and has held that role since February of 2021.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 8.81%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 17.95%, which places it in the top third during this time-frame.
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. FCPVX’s standard deviation over the past three years is 26.67% compared to the category average of 19.16%. Looking at the past 5 years, the fund’s standard deviation is 23.48% compared to the category average of 16.76%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.1, the fund is likely to be more volatile than the market average. 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. FCPVX has generated a negative alpha over the past five years of -0.88, demonstrating that 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.
The mutual fund currently has 88.76% of its holdings in stocks, which have an average market capitalization of $4.78 billion. The fund has the heaviest exposure to the following market sectors:
- Finance
- Other
- Industrial Cyclical
Turnover is about 40%, so those in charge of the fund make fewer trades than the average comparable fund.
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, FCPVX is a no load fund. It has an expense ratio of 0.98% compared to the category average of 1.21%. From a cost perspective, FCPVX 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.
Bottom Line
Overall, Fidelity Small Cap Value ( FCPVX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
For additional information on the Mutual Fund Equity Report 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 FCPVX too for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.