The Fidelity Magellan Fund (FMAGX) and several other Fidelity sector and international funds experienced large percentage drops of their Net Asset Value (NAV) at the end of the Friday trading session due to the distribution of capital gains. Investors will receive the distributions on the “pay date”, which is Monday, December 8. For more details click here.
Here are a few examples of Fidelity funds with large price drops:
Both the Dow Jones Industrial Average and the S&P 500 indexes closed at record high levels on Friday. The catalyst was the announcement by the Bank of Japan to substantially increase its Quantitative Easing program, which was expanded to include the purchase of equity and real estate investment trust assets.
As markets now show signs of stabilization, in my view, two Fidelity mutual funds stand out as new investment opportunities: the Select Wireless Communications Fund (FWRLX) and the Low Priced Stock Fund (FLPSX). Both funds pulled back during the market correction, but have moved back above their respective moving averages and their charts show a bullish price pattern.
Investors may have been alarmed by the large price drops of several Fidelity funds at the end of the Friday trading session. The drop in the net asset value (NAV) of these funds was largely due to the distribution of capital gains, which happens periodically. For more details click below: