Corporate bonds have experienced a volatile period since August of 2014, but the renewed demand for income producing investments and the strengthening of the U.S. economy makes high yield corporate bonds attractive again.
The Fidelity Capital and Income Fund (FAGIX) provides a great way to play this new trend. FAGIX, in spite of its name, is a high yield bond fund. The fund managers use a rigorous fundamental analysis to select investments. The chart shows that FAGIX broke out from a consolidation period, which lasted for six months. In our view, the 4.18% dividend, the potential for capital appreciation and the five star rating by Morningstar makes FAGIX an appealing investment choice.
Read more about investment strategies involving the FAGIX fund at FidelitySignal.com