The Fidelity Convertible Securities Fund (FCVSX) seeks a high level of total return by investing in convertible and preferred securities. The total return is achieved through a combination of income (the current yield is 2.16%) and capital appreciation.
The chart shows that FCVSX underperformed the broader market from February to mid May. Our expectation is that renewed interest in convertible securities will help FCVSX to resume its uptrend and that FCVSX will prove to be a solid investment in the coming months.
Buy and sell signals for Fidelity funds are available at FidelitySignal.com