Related topics: Fidelity, 401k, mutual funds, Vanguard, retirement
By making two moves early this year, you can get more from your 401k: Make the maximum contribution to your company's 401k plan, and invest in funds that have the lowest possible expense ratio, which puts more of your money to work.
With that in mind, here are seven proven Fidelity funds that belong in your portfolio. The funds can be combined into two types of risk-adjusted portfolio -- one targeting aggressive growth and the other designed to provide growth and income. Which type is best for you will depend on your age and risk tolerance.
Fidelity Low-Priced Stock Fund
Fund manager Joel Tillinghast has rarely owned fewer than 800 stocks in his portfolio, and often owns more than 1,000. At last count, Fidelity Low-Priced Stock (FLPSX) had 907 holdings. Tillinghast buys stocks priced at $35 a share or less, which increases the likelihood of small- and mid-cap investments in bull markets, but in bear markets can net him companies of virtually any size.
His long-term record has been one of solid, consistent performance. Average annual total returns over the last 10 years exceed 11%, almost double the performance of its Russell 2000 ($RUT.X) benchmark. Many of Tillinghast's top holdings come from the health care, consumer services and technology sectors. Among his top holdings: UnitedHealth (UNH, news), home health provider Lincare Holdings (LNCR, news), Oracle (ORCL, news) and Safeway (SWY, news).
Fidelity Focused Stock Fund
Manager Stephen DuFour invests in a concentrated portfolio of 45 stocks, mainly large-cap growth and value stocks. The top 10 holdings and sector weightings of the Fidelity Focused Stock Fund (FTQGX) reveal his focus on an expected recovery of U.S. and global consumers.
7 top Fidelity funds for your 401k
via money.msn.com
