With $2.3 trillion in assets under management, Fidelity Investments knows a thing or two about mutual funds. After all, it manages more than 200 mutual funds, spanning all sorts of investment classes and categories. But when it comes to choosing which mutual funds to invest in, Zacks Research has spotted three funds at Fidelity Investments that may be worth considering. All are rated as strong buys by Zacks, which expects them to outperform their peers.
One of the investments highlighted by Zacks is the Fidelity Select Technology fund (FSPTX), which is up nearly 50% year to date and up 22% on a three-year annualized basis. The fund has a lot of its investment dollars in stocks of companies that develop, produce or sell technology products. Some of the top holdings in this technology-focused fund include Apple Inc. (AAPL), Facebook, Inc. (FB), Microsoft Corporation (MSFT), Google parent Alphabet Inc. (GOOG) and Tesla, Inc. (TSLA). The fund has an expense ratio of 0.77% according to Morningstar.
Another mutual fund that Zacks rates as a strong buy is the Fidelity Select Medical Equipment and Systems Portfolio (FSMEX), which invests in companies that are focused on research, development, manufacturing and sales in the medical industries. The fund is up 30% year to date and has a three-year annualized return of 15.7%. The top five holdings in the fund are Medtronic plc (MDT); Becton, Dickinson and Company (BDX); Boston Scientific Corporation (BSX); Intuitive Surgical, Inc. (ISRG) and Stryker Corporatioin (SYK). The fund has an expense ratio of 0.76%, according to Morningstar.
Finally, Zacks pointed to the Fidelity Growth Company fund (FDGRX) as another top pick, with this one investing in companies that have the potential to grow above the industry average. The top holdings in the fund include NVIDIA Corporation (NVDA), Apple, Amazon.com, Inc. (AMZN), Alphabet and Facebook. The fund is up 33% year to date and up 16.07% on a three-year annualized basis. Zacks said that the growth fund's expense ratio of 0.77% is below the category average, which is 1.12%.