Are you on the hunt for a Mutual Fund Equity Report fund? You should think about starting with Fidelity Mid Cap Enhance Index Fund (FMEIX). While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FMEIX. The Fidelity Mid Cap Enhance Index Fund made its debut in January of 2008 and FMEIX has managed to accumulate roughly $2.11 billion in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.
Investors naturally seek funds with strong performance. FMEIX has a 5-year annualized total return of 13.76% 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 22.17%, 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. Compared to the category average of 22.43%, the standard deviation of FMEIX over the past three years is 21.05%. Over the past 5 years, the standard deviation of the fund is 18.01% compared to the category average of 18.44%. This makes the fund less volatile than its peers over the past half-decade.
The fund has a 5-year beta of 1.11, so investors should note that it is hypothetically more 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. Over the past 5 years, the fund has a negative alpha of -5.47. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
For 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, FMEIX is a no load fund. It has an expense ratio of 0.59% compared to the category average of 0.78%. Looking at the fund from a cost perspective, FMEIX 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.
Your research on the Mutual Fund Equity Report segment doesn’t have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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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