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Fidelity Advisor Funds

Simon
edited August 2019 in Fund Discussions
Quick question folks...as a retail investor can I buy Fidelity Advisor Funds (example FAGOX) via my brokerage?

To clarify, I have a self-managed T. Rowe Price IRA and it seems I can buy several classes of Fidelity Advisor Capital Opportunities Fund through their brokerage for no transaction fee or load.

I'm confused because the word "Advisor" implies I can only buy and sell Fidelity Advisor funds via a 3rd party (ie: a financial planner or advisor).

Have I got the whole situation wrong?

Comments

  • TedTed
    @Simon: Yes. Fidelity Advisor Funds are broker sold and are on most brokerage platforms. They have different share classes with front and differed loads attached, and come with higher expense ratios.
    Regards,
    Ted

    M* List Of FidelityAdvisor Funds:
    http://quicktake.morningstar.com/fundfamily/fidelity-investments/0C00001YR0/fund-list.aspx
  • Simon
    edited August 2019
    Many thanks Ted, I appreciate your reply. I've certainly noticed the higher expense ratios, by the way!

    Still curious why they are called "Advisor" funds if they are open to the retail investor on a direct basis. It suggests to me they are available only through financial professionals.
  • msf
    edited August 2019
    You can find all the Fidelity Advisor® funds on Fidelity's advisor site:
    https://institutional.fidelity.com/app/item/RD_13569_41600/fidelity-mutual-funds.html?pos=T

    Advisor funds, whether at Fidelity or elsewhere (e.g. T. Rowe Price advisor class shares) have fee structures designed to compensate advisors. That may mean a front end load (e.g. FACDX), increased 12b-1 or added marketing fees (e.g. FHCCX), or a combination of both (e.g. FACTX).

    Even if a share class doesn't have an explicit front end load, those extra fees can be so high (e.g. the 1% 12b-1 fee on FHCCX) that FINRA forces the companies to admit these fees really are loads - the shares cannot be sold as noload funds.
    https://www.sec.gov/fast-answers/answersmffeeshtm.html

    Regardless of how the fees are larded on, they're there to pay one's advisor. Usually one pay these extra fees regardless of whether one uses an advisor. So why not go through an advisor and get the services one is already paying for? Sure one can buy through a discount brokerage but that just sends those fees into the brokerage's pocket.

    Alternatively, one can often buy a retail equivalent for less. Fidelity offers clones of many of the Advisor® funds with no loads and lower fees, e.g. FSPHX instead of the A, C, M classes of Fidelity Advisor® Health Care given above. Though it does not appear to offer a clone for FAGOX.
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