Is Fidelity Advisor Equity Growth M (FAEGX) a Strong Mutual Fund Pick Right Now?

On the lookout for a Large Cap Growth fund? Starting with Fidelity Advisor Equity Growth M (FAEGX) is one possibility. FAEGX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

FAEGX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.

FAEGX is a part of the Fidelity family of funds, a company based out of Boston, MA. Fidelity Advisor Equity Growth M debuted in September of 1992. Since then, FAEGX has accumulated assets of about $1.78 billion, according to the most recently available information. The fund’s current manager, Jason Weiner, has been in charge of the fund since November of 2006.

Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 19.45%, 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 8.89%, 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. Over the past three years, FAEGX’s standard deviation comes in at 18.56%, compared to the category average of 15.4%. The fund’s standard deviation over the past 5 years is 18.88% compared to the category average of 16.34%. This makes the fund more volatile than its peers over the past half-decade.

The fund has a 5-year beta of 1.06, 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. With a positive alpha of 0.18, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.