The Mutual Fund Series: Fidelity Investments

The is the latest installment in the weekly series featured at – 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.

Read recent posts 

Receive each post automatically in your E-MAIL by clicking HERE.


  1. Brent Yarger on 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:


    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 on 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 on 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.

Leave a Comment