Fidelity OTC Portfolio (FOCPX)

Overview

The fund is designed to provide investors with access to primarily common stocks, focusing its investments significantly on securities that are traded on the NASDAQ or over-the-counter (OTC) markets, known for comprising a larger portion of small and medium-sized companies. With a strategic allocation of more than 25% of its total assets in the technology sector, the fund positions itself toward investors aiming to capitalize on the growth and innovation within tech industries. Recognizing the value of global diversification, it includes domestic and foreign issuers in its portfolio. The fund does not restrict itself to a single investment style; it seeks growth stocks which are expected to outperform the market average in revenue and earnings, and value stocks which are believed to be undervalued in the market. Despite its diverse investment in various stocks, it remains non-diversified in terms of the asset classes it invests in.

Products and Services

• Investment in Common Stocks

The fund's primary service entails investing in common stocks, providing investors with the potential for capital growth. It focuses on securities that have a significant presence on NASDAQ or the OTC markets, renowned for their substantial involvement of small to medium-sized enterprises. This offers investors exposure to potentially high growth segments of the market.

• Technology Sector Investments

Allocating over 25% of its total assets in the technology sector, the fund is an attractive option for investors looking to tap into the growth potential of tech companies. This significant investment speaks to the fund’s confidence in the continuous expansion and innovation within the tech industry, presenting a beneficial prospect for those seeking exposure to technological advancements and digital transformation.

• Domestic and Foreign Issuers

The inclusion of both domestic and foreign issuers in the fund's portfolio emphasizes its global investment approach. This strategy not only diversifies the investment risk but also provides investors with the opportunity to benefit from the growth of companies across different regions, thus potentially enhancing the portfolio's returns through exposure to varied economic cycles and opportunities.

• Growth and Value Stocks

By investing in both "growth" and "value" stocks, the fund diversifies its investment strategy to cater to different investor preferences and market conditions. Growth stocks offer the potential for above-average market gains, especially in booming sectors, while value stocks provide an opportunity to invest in undervalued companies that may offer significant upside as they rebound. This balanced approach allows the fund to navigate through varying market dynamics efficiently.