Is Fidelity Select Leisure & Entertainment (FDLSX) a Strong Mutual Fund Pick Right Now?

Sector - Other fund seekers should not consider taking a look at Fidelity Select Leisure & Entertainment (FDLSX) at this time. FDLSX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

History of Fund/Manager

Fidelity is responsible for FDLSX, and the company is based out of Boston, MA. Since Fidelity Select Leisure & Entertainment made its debut in May of 1984, FDLSX has garnered more than $497.06 million in assets. The fund is currently managed by Peter Belisle who has been in charge of the fund since February of 2025.

Performance

Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 7.62%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 8.26%, which places it in the bottom third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. FDLSX's standard deviation over the past three years is 16.06% compared to the category average of 16.97%. Looking at the past 5 years, the fund's standard deviation is 19.22% compared to the category average of 20.29%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 0.97, so investors should note that it is hypothetically as volatile as the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. FDLSX has generated a negative alpha over the past five years of -3.87, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FDLSX is a no load fund. It has an expense ratio of 0.68% compared to the category average of 0.93%. From a cost perspective, FDLSX is actually cheaper than its peers.

This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.

Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.

Bottom Line

Overall, even with its comparatively strong performance, average downside risk, and lower fees, Fidelity Select Leisure & Entertainment ( FDLSX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.

Want even more information about FDLSX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.

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