Fund Picks from Fidelity® displays funds in broad Morningstar asset classes. Within the asset classes, investment categories identify funds according to their historical investment styles as measured by portfolio statistics and composition over the past three years. Investment categories are represented by Morningstar categories.
Screening criteria
The universe of funds available for consideration in Fund Picks from Fidelity is comprised of Fidelity funds and FundsNetwork® funds available at Fidelity without paying a transaction fee ("NTF funds"). There are additional funds available through FundsNetwork® subject to paying a transaction fee and/or sales load that you may wish to evaluate using Mutual Fund EvaluatorSM. Fidelity is compensated by its FundNetwork partners for participation in the NTF program*.
At the end of each calendar quarter, Fidelity funds and FundsNetwork® NTF funds are screened separately from each other to include only actively managed open-ended funds, with relevant portfolio characteristics data (asset allocation, stock style, bond style), that are open to new investors with a minimum investment of no more than $2,500 (with the exception of $10,000 for Municipal Bond Categories and $25,000 for National Municipal Bond Categories). In addition, inverse/leveraged funds are excluded. When more than one share class of the same fund meets the minimum threshold, the share class with the lowest minimum will be shown. The Funds must also meet a $300 million total net asset threshold except for mid-cap categories, the threshold is $200 million and for small-cap and sector fund categories, the threshold is $100 million. The funds are further screened to include only those funds that have a minimum of three years' performance history. Funds in the top two net expense ratio quartiles for their investment category are removed. Finally, funds in the bottom three year performance quartile for their respective investment category, as well as funds with a Morningstar rating of 1 or 2 stars, are eliminated.
Funds are then selected with the highest three-year risk-adjusted return (Sharpe Ratio) within their respective investment category. The results of these screens are displayed within each investment category in two lists: (1) a list of up to five no-transaction fee Fidelity mutual funds; (2) a list of up to five Fidelity mutual funds and five FundsNetwork® mutual funds which are available at Fidelity without paying a transaction fee.
The performance data featured represents past performance, which is no guarantee of future results. Share price, yield and return will vary and you may have a gain or loss when you sell your shares. Mutual fund performance fluctuates and currently may be significantly lower than stated. Periods of market strength may not be repeated.
The screening process occurs quarterly based on the most recent quarter-end investment information. Investment data may change, such as Morningstar category, that will not be reflected until the next quarter’s generation process
Before applying the screening criteria, selected Morningstar categories are modified to include funds with only certain Morningstar principal investment objectives.
