Fidelity Balanced (FBALX)
The Fidelity Balanced investment fund is seeking income and capital growth consistent with reasonable risk. This Fidelity fund invests >60% of assets in stocks and other equity securities and the remainder in bonds and other bond securities, including lower-quality debt securities. It invests >25% of total assets in fixed-income senior securities such as preferred stock. The fund invests in domestic and foreign stocks and bonds.
Fund Details
Fidelity Balanced fund |
- Fund Inception Date: 11/6/1986
- Ticker Symbol: FBALX
- CUSIP: 316345206
- Beta (3yr): 1.04
- Rank in category (YTD): 19%
- Category: Moderate Allocation
- Distribution: 1.86%
- Capital Gains: 0%
- Expense Ratio: 0.60%
- Net Assets: $ 19.81 billion
- Number of Years Up: 20 years
- Number of Years Down: 4 years
- Annual Turnover Rate: 193%
Tobias Welo is the current lead manager of this fund. He started managing this fund in November 2011. This balanced fund has total net assets of $19.81 billion. The annual expense ratio of this fund is 0.60%. The average annual expense ratio in Moderate Allocation category is 1.03%. The average annual holdings turnover for the category is 74.44% while the annual holdings turnover rate for the fund is 193.00%. This fund has dividend yield of 1.86%. The latest distribution of the dividend was in October 2011 ($0.09).
Morningstar gave this fund 4-star rating. This best Fidelity fund has recorded 20 years in positive return since its inception in 1986. The best 1-year total return was recorded in 2003 with 28.24%. The fund has returned 6.54% over the past decade and 2.66% over the past five years. This fund has 3-year beta of 1.04, 5-year beta of 1.13 and 10-year beta of 1.16.
Investors will need a minimum initial investment of $2,500 for brokerage account. As for IRA account, the minimum initial investment is $500. There is no minimum subsequent investment for both accounts. There is no 12b1 fee and no front-end sales load fee for investing in this fund. There are 82 brokerages that sell this fund. They are Fidelity NTF, JP Morgan, T Rowe Price, E Trade Financial, Royal Alliance, Raymond James, Ameriprise Brokerage, Schwab Retail, etc. There is no other class of this fund.
As of the third quarter of 2011, this FBALX fund has a total of 2092 holdings. The top 10 holdings that represent 18.92% of the total portfolio including Apple Inc, Microsoft Corp, Procter & Gamble Co and Qualcomm Inc. The country diversification is USA (88.63%), United Kingdom (3.49%), Ireland (1.08%) and Canada (1.07%). The top major market equity sectors are Information Technology (20.10%), Financials (15.17%), Health Care (11.81%), Consumer Staples (11.41%), Industrials (10.80%) and Energy (10.66%).
According to the fund’s prospectus, the Principal investing risks are Stock Market Volatility, Interest Rate, Changes, Foreign Exposure, Prepayment, and Issuer-Specific Changes.
Pros:
- Low expense ratio fee
- Good track record
Disclosure: No Position
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