Fund Evaluator:
Fidelity Capital & Income (FAGIX)
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Best Performing in High Yield Bond Over the Last Year
| 11.4% | Fidelity Capital & Income (FAGIX) |
| 10.5% | Fidelity Advisor Capital & Income Z (FIQTX) |
| 7.4% | American Beacon SiM High Yld Opps Inv (SHYPX) |
| 7.4% | Fidelity Advisor High Income Z (FGUMX) |
| 7.2% | Fidelity High Income (SPHIX) |
Fund Details
Fidelity Capital & Income Overview
Fidelity Capital & Income (FAGIX) is an actively managed Taxable Bond High Yield Bond fund. Fidelity Investments launched the fund in 1977.
The investment seeks to provide a combination of income and capital growth. The fund invests in equity and debt securities, including defaulted securities, with an emphasis on lower-quality debt securities. It invests in companies in troubled or uncertain financial condition. The fund invests in domestic and foreign issuers. The advisor uses fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments.
About Fidelity Capital & Income (FAGIX)
There are 2 members of the management team with an average tenure of 14.94 years: Brian Chang (2019), Mark Notkin (2003). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Universal TR USD index with a weighting of 100% and ICE BofA US HY Constnd TR USD index with a weighting of 100%. Fidelity Capital & Income has 710 securities in its portfolio. The top 10 holdings constitute 30.5% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Fidelity Capital & Income is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Fidelity Capital & Income has 7.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 22.4%. There is 2.0% allocated to foreign stock, and 4.5% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 51.6% (46.4% domestic bond, 5.2% foreign bond and 1.2% convertible bond). Fidelity Capital & Income has 18.3% of the portfolio in cash.
Assets Under Management
The fund has $15 billion in total assets, which is above the $545 million average for the High Yield Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
FAGIX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Fidelity Capital & Income expense ratio is high compared to funds in the High Yield Bond category. Fidelity Capital & Income has an expense ratio of 0.86%, which is 6% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Fidelity Capital & Income has a portfolio turnover rate of 26%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 72% for the High Yield Bond category.
Recently, in the month of July 2026, Fidelity Capital & Income returned -2.0%, which earned it a grade of F, as the High Yield Bond category had an average return of -0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Fidelity Capital & Income has a trailing yield of 4.57%, which is below the 6.28% category average. The fund normally distributes its income monthly and its capital gains semi-annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Fidelity Capital & Income Grades
Year to date, the fund has returned 6.3%, 4.7 percentage points better than the category, which translates into a grade of A. The fund has returned 11.4% over the past year (grade of A), 11.5% over the past three years (grade of A) and 6.6% per year over the past five years (grade of A) and 7.9% per year over the past 10 years (grade of A).
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FAGIX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FAGIX Return (NAV) | -2.0% | 0.5% | 11.4% | 11.5% | 6.6% | 7.9% |
| FAGIX Grade | F | C | A | A | A | A |
| +/- Category | -1.7% | 0.0% | 6.5% | 4.0% | 2.9% | 3.1% |
| High Yield Bond Avg | -0.3% | 0.4% | 4.9% | 7.5% | 3.7% | 4.8% |
| FAGIX Tax Cost Ratio | na | na | 1.5% | 1.3% | 1.6% | 1.7% |
FAGIX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FAGIX Return (NAV) | 6.3% | 12.4% | 10.7% | 13.0% | -10.5% | 11.7% | 10.2% | 18.9% | -5.8% | 11.7% | 10.7% |
| FAGIX Grade | A | A | A | B | C | A | A | A | F | A | F |
| +/- Category | 4.7% | 4.5% | 3.1% | 1.1% | -0.4% | 6.6% | 5.0% | 5.9% | -3.1% | 4.9% | -2.7% |
| High Yield Bond Avg | 1.6% | 7.9% | 7.6% | 11.9% | -10.0% | 5.1% | 5.2% | 13.0% | -2.7% | 6.7% | 13.4% |
| Risk Measures | |
| Standard Deviation: | 6.1% |
| Total Risk Index: | 0.50 - Below Average |
| Category Risk Index: | 1.52 - High |
| Category Risk Grade: | F (100% Rank) |
| Beta: | 0.64 |
| R-Squared: | 34% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Growth |
| Bond Investment Style: | na |
| Yield: | 4.6% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Semi-Annually |
| Total Assets: | $15658 Mil |
| Fund Total Assets: | $15,659 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 26% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 23.0 years | |||
| Average Tenure: 14.9 years | |||
| Managers (Year): Notkin Mark (2003), Chang Brian (2019) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 710 |
| % in Top 10 Holdings: | 30.5% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 7.2% |
Portfolio Allocation |
|
| Domestic Stock: | 22.4% |
| Foreign Stock: | 2.0% |
| Preferred Stock: | 4.5% |
| Domestic Bond: | 46.4% |
| Foreign Bond: | 5.2% |
| Convertible Bond: | 1.2% |
| Other: | 0.0% |
| Cash: | 18.3% |
Purchase Information
| Fund Family: | Fidelity Investments |
| Phone Number: | 800-544-8544 |
| Website: | www.institutional.fidelity.com |
| Status: | Open |
| Inception Date: | November 1, 1977 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.86% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.92% |
| Share Class: | Fidelity Capital & Income |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
