Is Fidelity New Millennium (FMILX) a Strong Mutual Fund Pick Right Now?
On the lookout for a All Cap Growth fund? Starting with Fidelity New Millennium (FMILX) is one possibility. FMILX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that FMILX is a All Cap Growth option, and is loaded with different selections. All Cap Growth mutual funds look to invest in a wide variety of equities, no matter the size of the company and as long as the firm exhibits growth characteristics. In order to increase diversification, these portfolios have holdings across small, medium, and large-cap levels.
History of Fund/Manager
FMILX is a part of the Fidelity family of funds, a company based out of Boston, MA. Since Fidelity New Millennium made its debut in December of 1992, FMILX has garnered more than $5.14 billion in assets. Daniel Sherwood is the fund’s current manager and has held that role since October of 2022.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 14.72%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 20.2%, which places it in the top 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. Compared to the category average of 11.89%, the standard deviation of FMILX over the past three years is 13%. The fund’s standard deviation over the past 5 years is 14.96% compared to the category average of 15.07%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.9, the fund is likely to be less 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. FMILX’s 5-year performance has produced a positive alpha of 3.23, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating 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 principally on equities that are traded in the United States.
Currently, this mutual fund is holding 78.76% in stocks, with an average market capitalization of $594.25 billion. The fund has the heaviest exposure to the following market sectors:
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Technology
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Industrial Cyclical
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Finance
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Retail Trade
With turnover at about 30%, this fund is making fewer trades than its comparable peers.
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, FMILX is a no load fund. It has an expense ratio of 0.76% compared to the category average of 0.71%. Looking at the fund from a cost perspective, FMILX is actually more expensive than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that 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 Line
Overall, Fidelity New Millennium ( FMILX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Fidelity New Millennium ( FMILX ) looks like a good potential choice for investors right now.
Don’t stop here for your research on All Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FMILX to its peers 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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This article originally published on Zacks Investment Research (zacks.com).