The Mutual Fund Series: Fidelity Investments

The is the latest installment in the weekly series featured at JoeSangl.com – The Mutual Fund Series.

During each part of this weekly series, I will be looking at a specific mutual fund company.

Today's company is Fidelity Investments.

Fidelity Investments is a very large full-service investment company.  They manage over three hundred mutual funds and offer a variety of services.  Some of the services they provide include retirement plan management and discount brokerage services.

What I Like About Fidelity Investments

  • Options.  Lots of them.  With over three hundred mutual fund options, I can be certain that I can always find a fund that suits my investment goals.
  • Target Retirement Funds.  Along with Vanguard, Fidelity is a leading provider of target retirement funds.  They call their target retirement funds "Freedom Funds".  Target retirement funds are mutual funds that have a set retirement year attached to them.  As the targeted retirement year approaches, the fund portfolio will be automatically shifted toward a more conservative mix.  This is a really nice feature for those people who do not want to actively manage their retirement savings.
  • Full-service Investment Company.  I like companies that are well-rounded and can meet all of my personal investment needs.
  • On-Line Capability.  I have a 401(k) from a previous employer that I have left with Fidelity.  I have left it with Fidelity for a variety of reasons, but one reason is that I really like their on-line capabilities.  With a single click, I can see the total value of my investments, the individual return of each mutual fund, and the year-to-date performance of my overall portfolio.  I like that (but only when it tells me double-digit POSITIVE growth!).

What I Would Like To See Improved At Fidelity Investments

  • Lower "initial investment required".  Most of Fidelity's funds require an initial investment of $2,500.  This really blocks out beginning investors.  This requirement is usually removed when investing in mutual funds via a company 401(k), 403(b), or other retirement plan.  However, there are a lot of people who do not have access to such a company retirement plan, and it would be very helpful if Fidelity lowered the initial investment required to $250 (like American Funds).

Fidelity Investment Mutual Funds That I Own

  • ZERO.

Fidelity Investment Mutual Funds That I Am Considering Purchasing

  • Fidelity Magellan Fund [Ticker: FMAGX]  It has been around since 1963, has generated a 18.09% average annual return, and has a lower expense ratio (0.54%).

What Fidelity Mutual Funds do you own?

Read about the other mutual fund companies reviewed as part of the Mutual Fund Series HERE.

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3 Responses to “The Mutual Fund Series: Fidelity Investments”

  1. Brent Yarger May 14, 2008 at 4:45 am #

    I own a number of Fidelity funds in both my 401k and Roth IRA. One that I have been especially pleased with is the following:

    FICDX FIDELITY CANADA

    YTD Performance 5.20%
    1 Year 21.31%
    3 Year 25.86%
    5 Year 27.75%
    10 Year 14.59%
    Life 13.07%
    NAV as of 05/12/2008 64.59
    Morningstar Category Foreign Large Blend
    Morningstar Rating: 5 star
    Expense Ratio 0.96%

  2. Andy May 14, 2008 at 3:30 pm #

    I own these two (both in my 401k):
    Contrafund (FCNTX)
    Low-Priced Stock (FLPSX)

    Both funds have “guru” managers…Will Danoff (Contrafund) and Joel Tillinghast (Low-Priced Stock).

    The problem w/ many Fidelity funds is that they are too BIG! (in terms of total assets) This can lead to many performance obstacles.

  3. chris May 14, 2008 at 5:50 pm #

    I have Fidelity Contrafund in my deferred comp plan and Fidelity Balanced in my Roth.

    I’ve followed Contra since the early 90′s.

    I’ve been watching the CGM fund recently. I will have another Roth purchase to make at the beginning of next year and may put my money in that.

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