The Select Portfolios, launched to individual investors in 1981, are funds focused on investments within particular economic and industry sectors.
The funds are different than lifestyle or asset allocation funds, which generally represent a pre-mixed portfolio of different investment types. They are also distinguished from a self-directed brokerage option, where participants can choose from a broad range of individual securities and/or mutual funds, or a mutual fund “window” where participants can choose from an expanded variety of mutual fund options.
While they may be more volatile than more diversified funds, the Select Portfolios offer plan sponsors the ability to offer participants an alternative to trading individual stocks in a self-directed brokerage option.
The Fidelity Select Portfolio family includes seven broad sector funds:
- Financial Services
- Health Care
- Natural Resources
As well as 33 funds that focus on specific industries within these seven broad sectors.