Is a Fidelity Gold Fund a Good Investment?

What Works

It has a low expense ratio (~0.68%) compared to many peers.

The fund is focused on gold-mining and precious-metals companies, offering a way to gain exposure to that niche.

What to Watch Out For

Its past performance has been middling and volatile. For example, 5-year annualized returns place it in the bottom third of its category, and it has higher risk (more swings) than many peers.

Because it invests in mining companies rather than directly in gold, it adds corporate risk (management, production issues) on top of commodity risk.

Verdict

If you believe gold and precious-metal companies will rally and are okay with high risk, FSAGX could play a role in a diversified portfolio. If you seek steady growth or low volatility, this fund may not be the best choice.

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