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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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%
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.
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.