Fund Evaluator:
Fidelity Mortgage Securities (FMSFX)
Follow This Fund
Best Performing in Government Mortgage-Backed Bond Over the Last Year
| 5.4% | Fidelity Advisor Mortgage Securities Z (FIKUX) |
| 5.3% | Vanguard Mortgage-Backed Secs Idx Adm (VMBSX) |
| 5.2% | Fidelity Mortgage Securities (FMSFX) |
| 5.2% | Fidelity GNMA (FGMNX) |
| 5.0% | RBC BlueBay Access Cptl Community InvmIS (ACATX) |
Fund Details
Fidelity Mortgage Securities Overview
Fidelity Mortgage Securities (FMSFX) is an actively managed Taxable Bond Government Mortgage-Backed Bond fund. Fidelity Investments launched the fund in 1984.
The investment seeks a high level of current income, consistent with prudent investment risk. The fund normally invests at least 80% of assets in investment-grade mortgage-related securities (those of medium and high quality) and repurchase agreements for those securities. It invests in U.S. government securities and instruments related to U.S. government securities. The fund invests in U.S. government securities issued by entities that are chartered or sponsored by Congress but whose securities are neither issued nor guaranteed by the U.S. Treasury.
About Fidelity Mortgage Securities (FMSFX)
There are 2 members of the management team with an average tenure of 12.57 years: Franco Castagliuolo (2009), Sean Corcoran (2017). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US MBS TR USD index with a weighting of 100% and Bloomberg US Agg Bond TR USD index with a weighting of 100%. Fidelity Mortgage Securities has 1763 securities in its portfolio. The top 10 holdings constitute 27.1% 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 Mortgage Securities is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Fidelity Mortgage Securities has -13.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 103.6% (116.8% domestic bond, -13.2% foreign bond and 0.0% convertible bond). Fidelity Mortgage Securities has -2.6% of the portfolio in cash.
Assets Under Management
The fund has $430 million in total assets, which is above the $337 million average for the Government Mortgage-Backed 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.
FMSFX 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 Mortgage Securities expense ratio is average compared to funds in the Government Mortgage-Backed Bond category. Fidelity Mortgage Securities has an expense ratio of 0.45%, which is 49% lower than its category average, making the fund expense ratio grade a A. 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 Mortgage Securities has a portfolio turnover rate of 652%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 367% for the Government Mortgage-Backed Bond category.
Recently, in the month of June 2026, Fidelity Mortgage Securities returned 0.1%, which earned it a grade of D, as the Government Mortgage-Backed Bond category had an average return of 0.2%. 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 Mortgage Securities has a trailing yield of 3.91%, which is above the 3.81% category average. The fund normally distributes its income monthly and its capital gains 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 Mortgage Securities Grades
Year to date, the fund has returned 1.2%, 0.4 percentage points better than the category, which translates into a grade of B. The fund has returned 5.2% over the past year (grade of A), 4.5% over the past three years (grade of B) and 0.3% per year over the past five years (grade of C) and 1.3% per year over the past 10 years (grade of B).
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FMSFX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FMSFX Return (NAV) | 0.1% | 0.7% | 5.2% | 4.5% | 0.3% | 1.3% |
| FMSFX Grade | D | A | A | B | C | B |
| +/- Category | -0.1% | 0.2% | 1.0% | 0.4% | -0.1% | 0.2% |
| Government Mortgage-Backed Bond Avg | 0.2% | 0.4% | 4.2% | 4.2% | 0.4% | 1.1% |
| FMSFX Tax Cost Ratio | na | na | 1.3% | 1.2% | 0.9% | 0.9% |
FMSFX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FMSFX Return (NAV) | 1.2% | 8.3% | 1.0% | 4.9% | -12.2% | -1.0% | 4.4% | 6.4% | 0.8% | 2.3% | 1.9% |
| FMSFX Grade | B | B | C | B | D | B | B | A | B | A | A |
| +/- Category | 0.4% | 0.6% | -0.2% | 0.5% | -1.7% | 0.4% | 0.0% | 1.2% | 0.3% | 1.0% | 0.5% |
| Government Mortgage-Backed Bond Avg | 0.8% | 7.6% | 1.2% | 4.4% | -10.5% | -1.4% | 4.4% | 5.2% | 0.5% | 1.3% | 1.4% |
| Risk Measures | |
| Standard Deviation: | 6.6% |
| Total Risk Index: | 0.54 - Below Average |
| Category Risk Index: | 1.18 - High |
| Category Risk Grade: | F (94% Rank) |
| Beta: | 1.18 |
| R-Squared: | 99% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 3.9% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $772 Mil |
| Fund Total Assets: | $ 430 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 652% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 16.6 years | |||
| Average Tenure: 12.6 years | |||
| Managers (Year): Castagliuolo Franco (2009), Corcoran Sean (2017) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 1763 |
| % in Top 10 Holdings: | 27.1% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | -13.2% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 116.8% |
| Foreign Bond: | -13.2% |
| Convertible Bond: | 0.0% |
| Other: | -1.0% |
| Cash: | -2.6% |
Purchase Information
| Fund Family: | Fidelity Investments |
| Phone Number: | 800-544-8544 |
| Website: | www.institutional.fidelity.com |
| Status: | Open |
| Inception Date: | December 31, 1984 |
| 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 (%): | 0.45% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.89% |
| Share Class: | Fidelity Mortgage Securities |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
