Some of the best overall Fidelity funds are mutual funds that can finish 2016 on a high note.
Whether you want some of the industry’s cheapest index funds, leading actively managed funds or specialized sector funds, Fidelity has a broad selection of outstanding low-cost mutual funds to choose from.
The ones that are best to focus on for the remainder of 2016 are likely to be those that have shown strength during the year, with momentum coming into to the fourth quarter.
As I noted in the story on the Top 10 Mutual Funds for the Rest of 2016, the trend can indeed be your friend to the end, to paraphrase the cyclical investing mantra.
So with that backdrop, let’s take a look at three of the best Fidelity funds that can lead the market through the end of the year.
Best Fidelity Funds to Finish 2016: Fidelity Emerging Markets Discovery Fund (FEDDX)
Expenses: 1.45%, or $145 annually for every $10,000 invested
Minimum Initial Investment: $2,500
With a rising U.S. dollar and less excitement surrounding the U.S. economy, emerging markets are looking good. One of the best funds to buy to take advantage of this is the Fidelity Emerging Markets Discovery Fund (MUTF:FEDDX).
A strong dollar tends to hurt profits of U.S. exporting companies, but it helps those of large exporters outside of the U.S. Emerging markets stocks like FEDDX top holdings 58.com Inc (ADR) (NYSE:WUBA), Smiles SA (OTCMKTS:SMIFF), and Techtronic Industries Co. Ltd. (ADR) (OTCMKTS:TTNDF), have especially benefited from this economic environment in recent months.
Year-to-date, FEDDX is up over 17% and it leads nearly 80% of emerging markets stock funds. This doesn’t guarantee a strong finish on the year, but like other funds featured here, the momentum and conditions that got them market leading performance are still in place now.
Best Fidelity Funds to Finish 2016: Fidelity Select Transportation Portfolio (FSRFX)
Expenses: 0.81%
Minimum Initial Investment: $2,500
Industrial stocks came into the fourth quarter strong and if they continue their momentum, the Fidelity Select Transportation Portfolio (MUTF:FSRFX) is one of the best of its kind to buy.
A five-star fund, and a consistent leader among industrial sector funds, FSRFX holds stocks of companies engaged in the services, manufacturing, design and distribution of the transportation industry.
Top holdings include United Parcel Service, Inc. (NYSE:UPS), Union Pacific Corporation (NYSE:UNP) and American Airlines Group Inc (NASDAQ:AAL).
Because of its momentum coming into the fourth quarter, FSRFX was selected here at InvestorPlace as one of the 10 best mutual funds to hold through the rest of 2016.
Best Fidelity Funds to Finish 2016: Fidelity Select Semiconductors Portfolio (FSELX)
Expenses: 0.77%
Minimum Initial Investment: $2,500
Earnings for technology stocks, especially the tech sub-sector of semiconductors, have soundly beaten the S&P 500 in 2016 and could carry this potential through the year’s end.
The strategy for the Fidelity Select Semiconductors Portfolio (MUTF:FSELX) portfolio has it holding at least 80% of its assets in stocks of companies in the design and manufacture of semiconductors and other electronic components, such as connectors and printed circuit boards. Top holdings include Intel Corporation (NASDAQ:INTC), Qualcomm, Inc. (NASDAQ:QCOM) and Broadcom Ltd (NASDAQ:AVGO).
Just as semiconductors are leaders in the tech sector, FSELX is a big leader among mutual funds that hold technology stocks. Performance rankings for the fund place it ahead of 99% of all technology funds for the 1-, 3- and 5-year returns. Year-to-date FSELX is up more than 18%.
As of this writing, Kent Thune did not hold a position in any of the aforementioned securities. Under no circumstances does this information represent a recommendation to buy or sell securities.
