The 10 Best Fidelity Mutual Funds to Purchase and Maintain


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What are Fidelity Mutual Funds?

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Fidelity funds fall into a category called “mutual funds;” it is a type of investment that pools money from many individual investors and invests the money on their behalf. It’s a simple way to invest, as you can purchase a Fidelity mutual fund directly from them without even leaving your home or office.

Fidelity makes available several different types of mutual funds, including those that will allow you to invest in stocks, bonds, and money market instruments. No matter which Fidelity fund you choose, your money is invested by the professionals at Fidelity so you can sit back and relax knowing it’s being taken care of for a low fee.

What to Look for in a Fidelity Fund

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Fidelity funds are known for their low fees, but that’s not the only factor you should consider when choosing which fund is right for you. Here are some other qualities to look out for:

Fees – All mutual funds charge fees, although they can vary depending on how much money you have invested in the fund or how much trading your fund is doing. Fidelity funds tend to be low-cost.

Diversification – Your investment must be diversified, especially if it contains stocks. No one knows which way the stock market will move next, but by investing in a variety of companies, your chances of having a positive return are greatly increased.

Fidelity has Mutual Funds for Every Objective

You should always do your due diligence when choosing the best fund for your investment needs, and Fidelity has just ten types of mutual funds that will help you do just that.

Aggressive Growth Fund – This fund invests in small-cap growth stocks to maximize returns over five years.

Income Replacement Fund – With this fund you can create a plan to replace your income if you experience a disability, are laid off, or retire.

Energy Renaissance Fund – This fund is for active traders who want to invest in the energy sector.

International Growth and Income Fund – This fund invests primarily in non-U.S. stocks that focus on dividend payments and price appreciation over time.

Mid-Cap Growth Fund – This fund invests in mid-sized growth companies with excellent prospects.

Mid-Cap Value Index Fund – This fund provides investors the opportunity to invest in mid-cap stocks which are considered undervalued.

SectorSpice Fund – Focusing on the technological, media, and telecommunications industries, this fund is for aggressive investors.

10 Best Fidelity Mutual Funds

Top 10: Fidelity Large Cap Stock Fund (FDELX)

Inception Date: 1/14/1990

Real World Return: 8.4%

The large-cap stock fund from Fidelity has been in business for more than two decades. In that time, it has amassed a sizable portfolio that continues to grow.

Top 9: Fidelity Disciplined Equity Fund (FDEQX)

Inception Date: 3/28/2011

Real World Return: 7.2%

This is one of the best fidelity mutual funds that invests in primarily blue-chip companies which are considered very large with high growth prospects. This is an aggressive investment, meaning that there is a greater chance of your returns being lower than the market average.

Top 8: Fidelity Equity-Income Fund (FEQIX)

Inception Date: 1/26/1987

Real World Return: 7.6%

This fund invests in American companies, regardless of sector, with a history of positive earnings and dividends. It holds a sizable portfolio, but with a higher return.

Top 7: Fidelity Four-in-One Index Fund (FFNOX)

Inception Date: 3/28/2011

Real World Return: 7%

This has become a part of the list of the best fidelity mutual funds since it’s an index fund made up of the S&P 500 Index, Extended Market Index, Mid Cap Index, and Small-Cap Index, so you can invest in all levels of the stock market with this one fund.

Top 6: Fidelity Freedom Income Fund (FFIFX)

Inception Date: 9/2/1997

Real World Return: 7.8%

This is an index fund made up of foreign bonds, gold, and other commodities to create a diversified portfolio for income-seeking investors. It’s an aggressive investment that could increase and decrease in value over time.

Top 5: Fidelity Government Income Fund (FGOVX)

Inception Date: 7/1/1996

Real World Return: 7%

This is also one of the best fidelity mutual funds as it invests primarily in the U.S. Treasury and agency bonds, mortgage-backed securities, and corporate debt obligations with cash flow properties such as dividends and interest payments.

Top 4: Fidelity Growth and Income Fund (FGHIX)

Inception Date: 7/1/1996

Real World Return: 8%

This part of the best fidelity mutual fund is an aggressive investment that invests in American companies, regardless of sector, which has a high growth potential over the next five years. It’s worth noting that its minimum initial investment is $10,000 for most accounts.

Top 3: Fidelity International Discovery Fund (FINDX)

Inception Date: 3/28/2011

Real World Return: 5.6%

This fund invests primarily in foreign companies that have a history of dividend payments and earnings growth. It’s an aggressive investment with the potential to grow in value over time.

Top 2: Fidelity Low-Priced Stock Fund (FLPSX)

Inception Date: 8/1/1992

Real World Return: 7%

This is the 2nd best fidelity mutual fund which invests mainly in small and medium-sized companies that have lower valuations due to slow growth, high risk, or other factors. This is a high-risk investment, so only use the money you can afford to lose.

Top 1. Fidelity Magellan Fund (FMAGX)

Inception Date: 8/31/1963

Real World Return: 11.9%

This is the top or the best fidelity mutual fund which invests primarily in large companies that have a history of growth and stability. This is an aggressive investment, so your return is lower than the market average.

Additional Tips For Investing In Fidelity Funds

Now that you know a little bit about Fidelity mutual funds, there are some other things to consider to help you make the best possible investment decision.

Look at Performance

The fact that Fidelity manages these mutual funds is a testament to their strength, but it doesn’t hurt to take a look back at how they’ve done in the past before investing.

Check Minimum Investment Amounts

Investing anything less than the minimum amount will result in higher fees, so before investing, make sure you have the amount required.

Fidelity Funds Offer Peace of Mind

Finding the best mutual funds is crucial to your financial security and Fidelity can help. Each Fidelity fund mentioned here offers a great way to invest your money with reduced fees and diversified portfolios for top-of-the-line results. Fidelity has the expertise you need to feel at ease about your future.

Investing in Fidelity mutual funds can provide peace of mind and reduce stress if you know your money will grow over time. The 10 best examples are outlined above and these investments will help you feel more secure about your future because Fidelity manages these funds with expertise. It might be time for you to invest in them today.

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