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Any investors hoping to find a Government Mortgage - Intermediate fund could think about starting with Fidelity GNMA Fund (FGMNX). FGMNX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Government Mortgage - Intermediate funds is an area filled with choices, such as FGMNX. A mortgage-backed security (MBS) is a type of asset-backed security that packages mortgages together and then sells off the pooled securities. Government Mortgage - Intermediate funds focus on this market; this fund category presents a medium risk and yield profile, and concentrates on MBS with at least three years to maturity but less than 10.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FGMNX. Since Fidelity GNMA Fund made its debut in November of 1985, FGMNX has garnered more than $1.84 billion in assets. The fund's current manager, Franco Castagliuolo, has been in charge of the fund since December of 2009.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of -0.39%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 0.64%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of FGMNX over the past three years is 8.22% compared to the category average of 7.42%. The fund's standard deviation over the past 5 years is 6.48% compared to the category average of 5.95%. This makes the fund more volatile than its peers over the past half-decade.
With a beta of 1.06, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, FGMNX has a negative alpha of -0.03, which measures performance on a risk-adjusted basis.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FGMNX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 0.56%. FGMNX is actually cheaper than its peers when you consider factors like cost.