The Fidelity Select Leisure Fund (FDLSX) takes its approach to investment in an aggressive manner and is not leisurely in any manner other than the sector of its investment. The investments are concentrated in the services and design, production, and distribution of goods in the leisure industry under the guidance of Peter Dixon who is the fund manager.
Some think that during a recession this would not be a wise investment, but the annual annualized returns as of February 28, 2010 for the past year was 52.35%. There are a total of 55 different stocks, with McDonalds being the top investment along with Starwood, Wyndham, and Marriot hotels along with Carnival Corp., all in the top 10 as assets go. There is a 120% turnover in stocks associated with this fund, but that did not hurt its performance.
Ever since this fund’s inception in 1984, it has maintained a Morningstar rating of 4 stars and is considered a low risk and above average return type of investment. It does have an expense ratio of 0.93% with volatility measures of a standard deviation of 21.39, a beta of 0.96, and an R squared of 0.80.
If you are thinking about investing in this fund, Fidelity accepts both standard investment and IRS with a minimum of $2500 to open an account. This is considered a non-diversified fund. But this is common for sector targeted mutual funds. This fund has nearly 80% of its investments in the consumer services sector that caters to the wealthy. This is why that even during a recession it has made money. The wealthy play no matter what the economy is doing. As long as this is true, the Fidelity Select Leisure Fund (FDLSX) will be a positive performing fund.
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