The Fidelity Small Cap Discovery Fund (MUTF: FSCRX) is an IRA investment made up of small-cap companies whose common stock is undervalued or poised for above average growth. Many of the companies in this fund have a market capitalization similar to companies in the Russell 2000 Index or the S&P Small Cap 600 Index.
Here are the specifics for the Fidelity Small Cap Discovery fund for today’s mutual fund spotlight:
Investing Strategy: 98% of the fund’s assets are invested in stocks, with the remainder held in cash.
Expense Ratio: With an expense ratio of 1.05% and no transaction fee, the fund is among the cheaper funds in the category and one of only a few with a Morningstar Rating of five stars.
Top 5 Holdings: The top stocks in the Fidelity Small Cap fund include national neonatal physicians group Mednax Inc. (NYSE: MD) at 2.83%, specialized oilfield services and equipment provider Superior Energy Services, Inc. (NYSE: SPN) at 2.80%, independent energy company Berry Petroleum Company (NYSE: BRY) at 2.78%, titanium mill products supplier RTI International Metals, Inc. (NYSE: RTI) at 2.69%, and office furniture and hearth products supplier HNI Corporation (NYSE: HNI) at 2.58%
Returns: The Fidelity Small Cap Discovery fund’s 12-month return of 30.5% outperformed the broader markets’ 22% return. Its 5-year return of 38.4% outperformed the Dow Jones Industrial Average’s 8% return and near 1% return of the S&P 500 during the period.
Other Fund Statistics
- Total Assets: $2.10 billion
- Minimum Investment: $2,500
- Fund Manager: Chuck Myers
- Manager’s Tenure: Since March 2006
