What Is Fidelity Gold Fund?

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Fidelity Investments' gold fund is called Fidelity Select Gold Portfolio (stock symbol FSAGX). This mutual fund invests in companies that are involved in the mining, exploration, processing or selling of gold. It also invests in gold bullion.

History

  • Boston-based Fidelity Investments is the largest mutual fund company in the United States. It started Fidelity Select American Gold Portfolio in 1985, dropping "American" from the name in 1998. The fund merged with Fidelity Precious Metals & Minerals in 2000, under the Select Gold Portfolio name.

Holdings

  • Fidelity invests about 80 percent of Select Gold Portfolio in the common stock of national and international gold companies and bullion. The fund also invests in firms that are involved in silver, platinum or diamonds.

Performance

  • As of November 2009, the fund had posted an average annual pre-tax return of nearly 16 percent during the previous 10 years. The fund's minimum initial investment for both retirement and non-retirement accounts is $2,500.

Expenses and Fees

  • Select Gold Portfolio has an expense ratio of 0.89 percent--for every $100 you invest, 89 cents is used to cover fund expenses. The fund has a redemption fee of 0.75 percent if you sell your shares within 30 days after purchase.

Risk

  • The fund is less diversified than mutual funds that invest in multiple industries. Its share price can be volatile because of the international economic, political and regulatory factors that affect the gold industry.

References

  • Photo Credit Image by Flickr.com, courtesy of Andrew Magill
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