Here’s a quick take on whether Fidelity Select Gold Portfolio (ticker: FSAGX) is a good investment:
What it is
– FSAGX is a mutual fund that invests primarily in mining and exploration companies tied to gold and other precious metals.
– It has a relatively low expense ratio (~0.68%), which is better than many peer funds.
Strengths
– If you believe gold or gold-miners will outperform (e.g., during inflationary periods or market turbulence), this fund could benefit.
– The cost is reasonably competitive for a sector fund.
Weaknesses / Risks
– Its 3- and 5-year returns are in the bottom third of its category, meaning it’s under-performed many similar funds.
– The fund is very volatile (much higher standard deviation than peers) because gold‐miner stocks tend to swing more than broad stock or metal indices.
– Sector funds like this are inherently risky: they carry concentration risk (in one industry) and commodity risk (gold price fluctuations).
Verdict
If you want a small allocation to a gold‐mining fund as a hedge or speculative play, FSAGX might be worth considering.
But if you’re seeking a core investment for growth or income and want steadier performance, this fund may not be the best fit.