Fidelity Health Care Select
- About Fidelity Health Care Select
- Investment Strategy and Philosophy
- Performance Metrics
- Top Holdings and Portfolio Diversification
- Investment Opportunities and Challenges
- Risk Management and Mitigation
- Investment Process and Decision Making
- Institutional and Individual Investors
- Prospectus and Performance Updates
- FAQs and Contact Information
About Fidelity Health Care Select
Fidelity Health Care Select is a mutual fund managed by Fidelity Investments, one of the largest and most respected investment management companies in the world. The fund invests primarily in healthcare-related companies, with a focus on those that have demonstrated strong growth potential. The fund's objective is to provide long-term capital appreciation for its investors, while also offering some degree of income through dividends.Investment Strategy and Philosophy
Fidelity Health Care Select follows a growth-oriented investment strategy, which means that the fund seeks to invest in companies that have the potential to grow their earnings at a faster rate than the overall market. The fund's investment philosophy is based on the belief that healthcare is a particularly attractive sector for growth investing, due to factors such as demographic trends, advances in medical technology, and increasing demand for healthcare products and services.Performance Metrics
Fidelity Health Care Select has a strong track record of performance, having outperformed its benchmark index over both short- and long-term time horizons. As of the end of 2020, the fund had achieved an annualized return of 14.6% over the previous five years, compared to the S&P 500 healthcare sector index's return of 11.2% over the same period.Top Holdings and Portfolio Diversification
The fund's top holdings include some of the largest and most well-known companies in the healthcare sector, such as Johnson & Johnson, UnitedHealth Group, and Pfizer. However, the fund also seeks to invest in smaller, more specialized companies that may offer even greater growth potential. The fund's portfolio is well-diversified across different sub-sectors of healthcare, including pharmaceuticals, biotechnology, medical devices, and healthcare services.Investment Opportunities and Challenges
The healthcare sector offers a compelling investment opportunity due to its strong growth potential, but it also presents some unique challenges. One of the biggest challenges is the regulatory environment, which can be complex and constantly changing. In addition, the sector is highly competitive, with many companies vying for market share in a crowded field. Fidelity Health Care Select seeks to navigate these challenges by conducting rigorous research and analysis, and by investing in companies that have demonstrated a track record of success.Risk Management and Mitigation
Fidelity Health Care Select employs a number of risk management strategies to help mitigate potential losses. These include diversification across different sub-sectors of healthcare, as well as careful analysis of each company's financials, management team, and competitive position. The fund also maintains a disciplined approach to portfolio management, regularly reviewing and adjusting its holdings as necessary to maintain its investment objectives.Investment Process and Decision Making
Fidelity Health Care Select's investment process is based on a rigorous, bottom-up research approach. The fund's team of analysts conducts detailed analysis of each potential investment, looking at factors such as earnings growth potential, market share, and competitive position. The team also meets regularly with management teams and industry experts to gain additional insights into the companies they are considering investing in. Investment decisions are made by a team of portfolio managers, who take into account the findings of the analysts and other relevant information.Institutional and Individual Investors
Fidelity Health Care Select is open to both institutional and individual investors, and the fund has a wide range of share classes to meet the needs of different investors. The fund's institutional share class is designed for larger investors, such as pension funds and endowments, while its retail share class is designed for individual investors who may be investing through a brokerage account or other investment vehicle.Prospectus and Performance Updates
Investors can access Fidelity Health Care Select's prospectus and performance updates on the Fidelity Investments website. The prospectus provides detailed information about the fund's investment strategy, risks, and fees, while performance updates provide regular updates on the fund's performance.FAQs and Contact Information
For more information about Fidelity Health Care Select, investors can consult the fund's FAQs or contact Fidelity Investments directly. The FAQs cover a wide range of topics, from investment minimums to tax considerations, and can be found on the Fidelity Investments website. Investors can also contact Fidelity Investments by phone or email to speak with a representative who can answer their questions and provide additional information.People Also Ask about Fidelity Health Care Select:
What is Fidelity Health Care Select?
Fidelity Health Care Select is a mutual fund that primarily invests in companies involved in the health care industry, such as pharmaceuticals, biotechnology, medical devices, and health care services.
What are the benefits of investing in Fidelity Health Care Select?
Investing in Fidelity Health Care Select can provide potential long-term growth opportunities, as the health care industry is expected to continue to grow due to an aging population and advancements in technology and medicine. Additionally, this fund offers diversification within the health care sector, as it invests in a variety of companies across different sub-sectors.
What is the minimum investment for Fidelity Health Care Select?
The minimum initial investment for Fidelity Health Care Select is $2,500 for regular brokerage accounts and $500 for IRA accounts. However, some employer-sponsored retirement plans may have different minimum investment requirements.
What is the expense ratio for Fidelity Health Care Select?
The expense ratio for Fidelity Health Care Select is 0.71%, which is relatively low compared to other actively managed mutual funds in the health care sector.
