To all:
I just bumped into this thread; however, I have been trading Fidelity Sector funds like stocks for a few years.
Holding a Sector fund for 30 days or more eliminates any charges except the minor 7.50 one. Also, when I become worried, I go ahead and move that fund into the Sector Money Market (#085 at no cost and frequently take a breather). Sometimes I'll even take the 0.7% penalty (trades within 29 days) and move out anyway as I have a penchant for trading individual stocks with discount brokers which still costs around 1%+ - so what's the diff??.
The way I look at it if a sector fund is appreciating over 30% within a year, it's worth specinvesting. I am in retirement and still trading both Sector Funds and individual stocks - a big proportion of my holdings. Sector funds provide a safety valve in that one can
jump out of them fast. FSESX is a great example of a wonderful timing investment, but if it drops with the total Oil Services industry easily followed by watching Noble, Parker, Schlumberger and Halliburton Oil Service stocks in your newspaper then you can move out in advance of a serious decline (if you're nervous).
Also, you can call Fidelity and get the 10 largest holdings in any fund from their research dep't.
Regarding MFIS, Kobren does provide a good info. You will do better than $177,however, after the first year as they drop fees significantly from the 2nd yr. on (maybe not generally known).
The best thing he delivers is his once a yr. guide to Fidelity Funds, which describes all the funds and their managers in detail - very good. His Friday nite hotline (not an 800 no.) does describe some changes in his outlook for the week; and anytime there is a 150.00 move in the total market, he gives you a special news update.
Traveling out of the country is no problem with Fidelity. While in Europe this Summer, I traded back into some funds (after a bad April) in time to catch some early gains in May. Trading was easy thru their 800 no. C&N London on the TV brings early morning stock reports.
Angler |
