Is Fidelity OTC Portfolio K (FOCKX) Currently a Top Choice Among Mutual Funds?

Fidelity OTC Portfolio K (FOCKX): An Overview

For those interested in Large Cap Growth mutual funds, Fidelity OTC Portfolio K (FOCKX) stands out as a strong contender. According to Zacks Mutual Fund Rank, FOCKX holds a top rating, reflecting its favorable size, cost structure, and historical performance.

Fund Purpose

FOCKX belongs to the Large Cap Growth category, which features funds investing in sizable U.S. companies expected to deliver above-average growth. To qualify as large-cap, these companies must have a market capitalization exceeding $10 billion.

Fund and Management Background

Managed by Fidelity, headquartered in Boston, MA, FOCKX was launched in May 2008. The fund currently manages approximately $9.5 billion in assets. Christopher Lin has been at the helm since September 2017.

Performance Highlights

Performance is a key consideration for investors. Over the past five years, FOCKX has achieved an annualized total return of 15.28%, placing it among the top third of its peers. Its three-year annualized return stands at 30.1%, also ranking in the upper third of similar funds.

Keep in mind that reported returns may not include all fees and expenses, such as sales charges, which would reduce overall returns.

Volatility is another important metric. FOCKX's three-year standard deviation is 15.04%, higher than the category average of 13.01%. Over five years, its standard deviation is 18.38%, compared to the category average of 14.78%, indicating greater volatility than comparable funds.

Risk Assessment

Beta is a useful measure of a fund's risk relative to the market. FOCKX's five-year beta is 1.11, suggesting it is more volatile than the market average. Alpha, which evaluates performance relative to a benchmark (the S&P 500), is -0.48 over the past five years, indicating the fund has struggled to outperform its benchmark on a risk-adjusted basis.

Portfolio Holdings

Reviewing a fund's holdings can reveal the manager's investment approach and any biases. FOCKX primarily invests in U.S. equities, with 79.52% of its assets in stocks. The average market capitalization of these holdings is $862.5 billion. The fund is most heavily weighted toward the technology sector.

• Technology

With a turnover rate of 53%, FOCKX managers trade less frequently than similar funds.

Cost Structure

Evaluating fees is crucial when selecting mutual funds. FOCKX is a no-load fund with an expense ratio of 0.65%. There is no minimum initial investment required, and subsequent investments also have no minimum amount. Advisor fees are not included in the reported returns, so actual returns may be lower if those are applied.

Summary

Fidelity OTC Portfolio K ranks among the top 20% of mutual funds tracked by Zacks, making it a strong option for those seeking exposure to Large Cap Growth.