How was the Fidelity Select Fundranker system developed?
In early 2003, as we developed our mutual fund trading system here at Fidelity Select Fundranker, we adopted four basic principles: 1) concentrate on Fidelity Investments Select mutual funds, 2) stay 100% invested, 3) monitor the performance of potential funds and move regularly to better performing funds, and 4) stay diversified. The overwhelming number of mutual funds that exist in the United States made it clear we had to limit the scope of our trading system somehow and led us to our first principle. We chose Fidelity Investments funds because of the breadth of their fund choices, the performance of their funds, their commitment to research, and their groundbreaking Internet technology for managing accounts. Extensive testing showed that the Fundranker system provided a higher overall return using only their Select funds. Our second principle is to stay 100% invested. Many studies have shown that the certainty of being in the market during upturns more than makes up for being in th
