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Selection of fidelity mutual funds

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Abstract

This study investigates the possibility of identifying those mutual funds in the Fidelity Family which might outperform the S&P 500 by using Jensen's alphas. An average of Jensen's alphas for a three-year period covering 1991–93 was computed and 1994 was used as a test case. A total of 152 Fidelity mutual funds were included in the study. Data were obtained fromAlexander Steele's Mutual Fund Expert Data Base [Steele Systems, Inc.] andHuntington Financial Optima Data Base [Huntington Associates Financial, Inc.]. It was found that it was possible to identify high performance funds. These funds had an alpha over 0.80. There were 21 funds in this group which produced an average total return of 4.44 percent, while S&P 500 had a total return of 1.32 percent in 1994.

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References

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Authors and Affiliations

  1. Pace University, USA

    Hubert Roosma

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  1. Hubert Roosma
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Additional information

Any errors found in this paper are the sole responsibility of the author. The author would like to express sincere appreciation to Steele Systems, Inc. and Huntington Associates Financial, Inc. for providing the necessary data used in this study. Special appreciation also goes to Melissa Luo who so diligently and carefully performed all the computer work.

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Roosma, H. Selection of fidelity mutual funds. International Advances in Economic Research 2, 132–136 (1996). https://doi.org/10.1007/BF02295052

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  • DOI: https://doi.org/10.1007/BF02295052

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