This next fund, Fidelity Contrafund, is part of growth fund and one of Kiplinger’s 25 best funds. Growth funds can be classified into Large Growth, Mid Growth, Small Growth, and Foreign Growth. Fidelity Contrafund is part of Large Growth fund. Large growth fund usually invests in large capitalization companies (i.e. company with $10 billion or higher capitalization).
Rule of thumb is to invest about 20-30% of asset in this large cap fund. This type of fund is suitable for investor seeking capital growth, moderate investor, conservative investor, aggressive investor, etc.
Fidelity Contrafund (Ticker: FCNTX)
Fidelity Contrafund fund objective is to achieve the capital appreciation. This Fidelity fund will invest most of its net assets in common stocks either domestic or foreign issuers. It may invest in companies that pass the qualification of Fidelity Management & Research Company (FMR) even though those companies are not fully recognized by the public. The fund management team has few criteria in selecting which investments to be made, such as the issuers’ financial condition, their industry position, and market & economic conditions. This FCNTX fund may invest in either growth stocks or value stocks or both of them.FCNTX Fund Details
- Fund Inception Date: May 1967
- Ticker Symbol: FCNTX
- CUSIP: 316071109
- Net Assets: $110.7 billion
- Beta: 0.85
- Rank in category (YTD): check web
- Category: Large Growth
- Yield: 0.26%
- Expense Fee: 0.68%
- Capital Gains: 0.0%
- Number of Years Up: 32 years
- Number of Years Down: 11 years
Since September 1990, this fund is managed by William Danoff which as well served as the vice president of Fidelity Investment. In the large growth category, FCNTX has quite low annual expense ratio with 0.91%, while the average expense ratio in the category is 1.31%.
This fund doesn’t have any 12b1 management fee and any sales-load fee. The minimum balance to open a brokerage account in this large growth stock fund is $2,500 and $500 for IRA account. There is no minimum subsequent investment.
Fund Returns
This top stock fund also achieves 4-stars rating from Morningstar. The fund has returned 4.91% over the past 5 years and 7.34% over the past decade. The best total return was achieved in 1998 with 31.57%. The fund also experienced its worst return in 2008 with -37.16%. For short term performance, the annualized total return is 18.44% over the past one year and 3.92% over the past 3 years.- Year 2017: 13.19% (YTD)
- Year 2016: 3.36%
- Year 2015: 6.46%
- Year 2014: 9.56%
- Year 2013: 34.15%
Note: You can also invest in other Kip 25 large cap funds such as BBH Core Select, Dodge & Cox Stock, and T Rowe Price Equity Income.
This Best Fidelity equity fund also has lower annual holdings turnover (46%) than the average (88%) in the Large Growth category. The top 10 holdings for the first quarter of 2011 are Apple Inc, Google Inc A, Berkshire Hathaway Inc CL A, Wells Fargo & Co, Disney (Walt) Co, McDonalds Corp, Coca Cola Co, Noble Energy Inc, Oracle Corp, and TJX Companies Inc. These top ten holdings make up to 28.31% of the total portfolio out of the 469 total holdings. The currency diversifications include US dollar (86.49%), Canadian dollar (6.26%), UK Pound (1.53%), Australian Dollar (1.14%), Korean Currency (1.07%), Hong Kong Dollar (1.06%), etc. The Top 6 major market sectors of this fund are information technology (32.18%), consumer discretionary (17.25%), financials (10.93%), health care (8.26%), energy (7.9%), and industrials (6.73%).
Principal Investment Risks include
- Stock Market Volatility
- Foreign Stocks Exposure
- Management Style Risk
This Fidelity Contrafund (FCNTX) Fund was part of Kiplinger's 25 best mutual funds before.
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