Is Fidelity Asset Manager 20% (FASIX) a Strong Mutual Fund Pick Right Now?
Having trouble finding an Allocation Balanced fund? Fidelity Asset Manager 20% (FASIX) is a possible starting point. FASIX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
FASIX is classified in the Allocation Balanced segment by Zacks, which is an area full of possibilities. Here, investors are able to get a good head start with diversified mutual funds, and play around with core holding options for a portfolio of funds. Allocation Balanced funds look to invest across a balance of asset types, like stocks, bonds, and cash, though including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation.
History of Fund/Manager
FASIX finds itself in the Fidelity family, based out of Boston, MA. Fidelity Asset Manager 20% made its debut in October of 1992, and since then, FASIX has accumulated about $4.97 billion in assets, per the most up-to-date date available. The fund's current manager, Geoffrey D. Stein, has been in charge of the fund since June of 2009.
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 3.5%, and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 4.16%, which places it in the bottom 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. FASIX's standard deviation over the past three years is 3.01% compared to the category average of 9.21%. Looking at the past 5 years, the fund's standard deviation is 3.18% compared to the category average of 9.37%. This makes the fund less volatile than its peers over the past half-decade.
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In FASIX's case, the fund lost 16.77% in the most recent bear market and outperformed its peer group by 19%. This could mean that the fund is a better choice than comparable funds during a bear market.
Even still, the fund has a 5-year beta of 0.21, so investors should note that it is hypothetically less volatile than the market at large. 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. The fund has produced a positive alpha over the past 5 years of 0.54, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, FASIX is a no load fund. It has an expense ratio of 0.51% compared to the category average of 0.92%. FASIX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Overall, Fidelity Asset Manager 20% ( FASIX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and lower fees, Fidelity Asset Manager 20% ( FASIX ) looks like a somewhat average choice for investors right now.
For additional information on the Allocation Balanced 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 FASIX 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.
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