Why the Method Works

There are three main reasons why the Fidelity Select Switching System can yield returns far above the market averages:

• The use of sector funds enables focused investments in the strongest performing market groups. The volatility associated with sector investing provides higher profits for rising funds, but with greater risk of loss when these funds are falling in price.
• The Fidelity Select Portfolios are aggressively managed and have an outstanding performance record as a group. For example, the American Association of Individual Investors (AAII) reports that for 1995, 8 of the top 20 performing low- and no-load funds were Selects, but only 1 of the bottom 20 was. For 1993-1995, Select funds had 6 of the top 10, 10 of 20, and 15 of the top 50 total returns. More information on the Select funds and their performance is available from Fidelity's Web Page.
• Thorough research and testing have resulted in appropriate methods and parameters to take advantage of the first two reasons. The method is described on another page.