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Strategies & Market Trends : Fidelity Select Sector funds -- Ignore unavailable to you. Want to Upgrade?

To: Christopher who wrote (925)	9/6/1998 5:01:00 PM
From: MoneyPenny	Read Replies (1) \| Respond to of 4916

Select funds are fidelity funds and there is a load on the funds that Fidelity collects when you first buy in unless you are purchasing with "load" money: proceeds from mutual funds on which you have already paid the 3% load. There is no other broker that will waive Fidelity's load. I am not sure if other brokerages charge on top of the load or if the select funds are available through other venues. Once you have paid this 3% load that money carries a waiver throughout it's life, reflecting appreciation and distributions. For instance, in my case, I invested about 1000 ages ago in a select fund, probably electronics, which I have traded over the past few years and the only additional load I have paid is $7.50 for each trade if I have held in the select for 30 days. This $1000 is about $13000. I have no intention of losing the advantage of that load waiver. Right now that particular select $ is in the select money market which pays a lower rate because most money stays in it for such a short time. Many people complain about the load, but I think it is more than fair considering the other options available for sector investing or the amount of money required to get that same exposure in individual stocks. No one else has the range of choices. You should explore further at fidelity.com

To: Christopher who wrote (925)	9/7/1998 10:41:00 AM
From: Angler	Read Replies (1) \| Respond to of 4916

Christopher: The Select funds are proprietory with Fidelity. They carry a first time 3% load in IRA or regular acc'ts.which can be retained as long as you exchange monies from that select exchange purchase into any other Fidelity Select and/or Fidelity Fund or select Money Market fund. Considering that a direct purchase of individual stocks can cost 1 to 4% commission (depending on size and dealer)in both buy and sell trades, this is not a bad deal. So once you're in the Select in one portfolio, you have a continuing credit of 3% - not a bad deal. You must keep your Select fund position intact for 29 days or incurr a .075% penalty except in the No. 085 M.Mkt. Angler