Why only Select mutual funds?
Fidelity Select Fundranker research with data from 1997 to 2003 showed that using only the Select mutual funds resulted in a better overall return than using all of Fidelity Investments’ mutual funds. There was an additional factor that tipped Fidelity Select Fundranker toward Select funds only, but that factor was undone by Fidelity as of October 1, 2006. When Fidelity Select Fundranker was developed and through September, 2006, Fidelity Investments allowed their Select mutual funds to be traded as often as an investor wished with no penalties other than short-term trading fees. This policy allowed Fidelity Select Fundranker to preselect exchange dates that avoided those short-term trading fees. As of October 1, 2006, however, Fidelity Investments placed more stringent trading rules on their Select funds, which now have the same rules as their other funds. Now none of Fidelity Investments’ funds are intended to be traded frequently. Fidelity Investments’ new frequent trading policy fo
