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The Curious Bag
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The Fidelity Select Gold Portfolio is a mutual fund offered by Fidelity Investments. It invests shareholder assets specifically within the precious metals industry. Due to its narrow focus, it is considered a non-diversified mutual fund.
Sector Funds
In order to offer investment products oriented to more experienced investors, a number of mutual fund companies have introduced industry-specific mutual funds.
FSAGX
Introduced in 1985, Fidelity Select Gold Portfolio (ticker symbol FSAGX) is an open-ended mutual fund that normally invests the bulk of its assets in equities (stocks) of companies involved in gold-related activities.
Representative Assets
FSAGX seeks to remain fully invested and holds no fixed-income securities in its portfolio. Widely known companies in the portfolio include Newmont Mining, American Barrick and Goldcorp, among many others.
Alternative Assets
While FSAGX seeks to hold at least 80 percent of its assets in mining stocks, it also will own physical gold bullion or coins and may invest in jewelry, watches or other related assets.
Considerations
Investing in sector-specific mutual funds contains risks that differ from diversified mutual fund objectives. Most notable for the gold sector is the impact of global economic and political risk. Gold is often in greater demand during unstable conditions.
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