Two of the most anxiously anticipated new tech and telecom sector funds launch on Tuesday:
Fidelity Select Wireless
Fidelity Select Networking & Infrastructure
. As always, investors should take a long look before they leap.
Bob Pozen, head of Fidelity's investments arm, has consistently and publicly refused to launch an Internet fund. But the Networking & Infrastructure portfolio will probably zero in on companies such as
that are building out the Internet and the Wireless fund will probably pay plenty of attention to firms that will help us all access the Internet from the beach through our cell phones and Palm pilots.
previewed both funds on July 5.
Although both the networking and wireless sleeves of the tech and telecom sectors have been mercurial this year, investors are still intrigued by the subsectors' long-term growth potential. Another factor in the funds' favor is Fidelity's generally strong track record with sector funds. The firm's deep pool of analysts has typically led to solid returns vs. peers.
That said, it might be a good idea to look carefully at the funds before buying a share. Each has broad leeway and
young managers. You should also brace for several management changes, which are common among Fidelity's Select funds where analysts cut their teeth as portfolio managers. The funds also won't necessarily be the cheapest on the shelf, charging a maximum 3% front-end load.