Fidelity Funds – Fidelity Capital & Income Fund (FAGIX)
Click to Enlarge Fund type: Income fund
This next Fidelity fund is an oldie but a goodie.
Conservative investors should like the fact a seasoned pro is taking care of the $10.3 billion fund which invests in the bonds of companies rated below investment grade.
For those seeking income, FAGIX’s 30-day SEC yield is 3.76%, and the fund’s holdings carry a weighted average maturity of 5.7 years as well as a duration of 3.99 years.
FAGIX holds a total of 683 securities, with its top 10 holdings representing less than 10% of the overall portfolio. If you’re turning 46% of the portfolio each year, you definitely want someone experienced in buying and selling a large number of bonds every year. But it’s important to keep in mind that approximately 20% of the portfolio is invested in equities and convertible preferred stock. In other words, Notkin and his team have to be good at both stocks and bonds.
The performance of FAGIX over the long term indicates this is indeed the case.