Fastest Growing Retail Sales in October: 4 Fund Choices

By on November 18, 2021 0

Retail sales grew at the fastest pace since March in the United States. While it is beneficial for economic growth, excess spending is due to inflation. However, with the holiday season quickly approaching, retailers are hoping consumers will soon be flooding stores, both physical and online. In light of this, investors can choose funds like Fidelity Select Retail Portfolio FSRPX, Fidelity Select Loisirs Portfolio FDLSX, Franklin DynaTech Fund Class A FKDNX and Fidelity Select Portfolio for Consumer Discretionary FSCPX.

On November 16, the US Census Bureau reported that retail sales and food services rose 1.7% to $ 638.2 billion in October, beating the consensus estimate of 1.3%. October’s figure exceeded September’s slightly revised upward figure of 0.8% and is 16.3% higher than the same period last year.

Last month’s report shows Americans have an appetite for goods even when they have to pay more. Online retail sales rose 4%, while department stores and electronics and appliance stores posted 2.2% and 3.8% higher sales in the month. Revenues at food services and drinking places rose 3.9% in October.

Consumer prices rose nearly 1% in October, and with rising inflation, Americans are paying more for almost all items. In fact, constraints on the supply side make products like new cars harder to find and are pushing prices up to record highs, despite sales figures rising 1.8%. Gasoline prices also rose 3.9% and sales at gasoline stations rose 1.6% last month.

On the bright side, as the holiday season approaches, retail sales are expected to retain “tremendous momentum,” according to National Retail Federation (NRF) President and CEO Matthew Shay. According to NRF forecasts, holiday sales (in November and December) this year are expected to grow between 8.5% and 10.5%, reaching $ 843.4 billion to $ 859 billion. The mitigated effects of the pandemic will keep consumers hooked on online and other stores, which will help sales increase by 11% to 15%. Additionally, according to Deloitte’s survey, an average American family, especially high-income households, is expected to spend $ 1,463 during the holiday season, highlighting a 5% growth from the same time period. last year.

4 mutual funds to buy

Retail sales pick up in October, necessitating investing in the four mutual funds mentioned below. The selection includes retailers, providers of travel and leisure products and services, as well as some technology funds engaged in the retail and sale of toys and video games online.

These funds carry a Zacks # 1 (strong buy) or 2 (buy) mutual fund rating. In addition, these funds have encouraging returns over one and three years. In addition, the minimum initial investment is $ 5,000.

We expect these funds to outperform their peers in the future. Remember, the goal of Zacks’ Mutual Fund Rankings is to guide investors in identifying potential winners and losers. Unlike most fund rating systems, Zacks’ mutual fund ranking does not focus only on past performance, but also on the likely future success of the fund.

The question here is: why should investors consider mutual funds? The low transaction costs and portfolio diversification without multiple commission fees associated with stock purchases are the main reasons for investing money in mutual funds (learn more: Mutual funds: advantages, disadvantages and how they make money for investors).

Fidelity Select Retail Portfolio The fund aims for capital appreciation. This non-diversified fund invests the majority of its assets in securities of companies that market finished products and services to individual clients. FSRPX invests in US and non-US stocks.

This Zacks Sector-Other product has a history of positive total returns for over 10 years. Specifically, FSRPX has returned 25.9% and 23.6% over the past three and five years, respectively. To see how this fund has performed against its category and other ranked 1 and 2 mutual funds, please click here.

The Fidelity Select Retailing portfolio has a Zacks # 1 mutual fund ranking and an annual expense ratio of 0.73%, below the category average of 0.79%.

Franklin DynaTech Fund Class A targets capital appreciation. The fund invests in common stocks of companies which the fund manager believes are leaders in innovation, take advantage of new technologies, have superior management and benefit from new industry conditions in an economy dynamically changing world.

This Zacks Sector – Tech product has a history of positive total returns for over 10 years. Specifically, FKDNX has returned 34.6% and 29.5% over the past three and five years, respectively. To see how this fund has performed against its category and other ranked 1 and 2 mutual funds, please click here.

Franklin DynaTech Fund Class A has a Zacks Mutual Fund Rank # 1 and an annual expense ratio of 0.85%, below the category average of 0.99%. FKDNX has a significant investment in online retailers and game companies that should benefit during the holiday season.

Fidelity Select Loisirs Portfolio The fund aims for capital appreciation. The fund invests at least 80% of its assets in companies that design, produce or distribute goods or services in the leisure industries. This non-diversified fund invests in national and foreign stocks.

This Zacks Sector-Other product has a history of positive total returns for over 10 years. Specifically, FDLSX has three- and five-year returns of 20.1% and 17.9%, respectively. To see how this fund has performed against its category and other ranked 1 and 2 mutual funds, please click here.

The Fidelity Select Leisure portfolio has a Zacks Mutual Fund Rank # 1 and an annual expense ratio of 0.77%, below the category average of 0.79%.

Fidelity Select Portfolio for Consumer Discretionary The fund aims for capital appreciation. This non-diversified fund invests the majority of its assets in common stocks of companies that manufacture and distribute consumer discretionary goods and services. FSCPX invests in national and foreign stocks.

This Zacks Sector-Other product has a history of positive total returns for over 10 years. Specifically, the FSCPX has three- and five-year returns of 23.8% and 20.5%, respectively. To see how this fund has performed against its category and other ranked 1 and 2 mutual funds, please click here.

The Fidelity Select Consumer Discretionary portfolio has a Zacks mutual fund ranking # 2 and an annual expense ratio of 0.76%, below the category average of 0.79%.

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