Large Price Drop of Multiple Fidelity Funds is due to Capital Gains Distribution

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:

ficdx

 

fhkcx

fmagx

fsptx

fwrlx

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Equity Rally Accelerates; New Buying Opportunities

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.

fwrlx

flpsx

Read about investment strategies involving these funds at FidelitySignal.com

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Large Price Drop of Multiple Fidelity Funds is due to Capital Gains Distribution

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:

Here are a few examples of Fidelity funds with large price drops:

fsptx

fwrlx

fsmex

fshox

fsdpx