Fidelity’s Best 401k Funds: Part 2

This post is part 2 of Fidelity’s best 401k funds article. The top mutual funds are Fidelity Low-Priced Stock Fund, Fidelity Puritan Fund, etc.

Top Fidelity Funds

Fidelity Investments is one of the largest asset management firms in the world. It manages more than $2 trillion of investment assets. As one of the largest players in 401(k) plans, Fidelity also has lot of high rated mutual funds for your 401k account.

As described in my part 1 article, these best Fidelity’s mutual funds for your retirement account are selected based on its management, popularity & performance for the past decade. Some of these funds are ranked among the best in their category. They are also being recognized by popular financial magazine such as US News, Barron, Forbes, Morningstar, etc.

Fidelity’s best 401k funds are:

1. Fidelity Contrafund (FCNTX)
2. Fidelity Balanced Fund (FBALX)
3. Fidelity International Discovery Fund (FIGRX)
4. Fidelity Low-Priced Stock Fund (FLPSX)
5. Fidelity Puritan Fund (FPURX)
6. Fidelity Total Bond Fund (FTBFX)
7. Fidelity Blue Chip Growth Fund (FBGRX)
8. Fidelity Spartan International Index Fund Investor (FSIIX)
9. Fidelity Capital & Income Fund (FAGIX)

Updated on 10/13/2015

Fidelity Low-Priced Stock Fund (FLPSX)

This Fidelity Low-Priced Stock Fund invests mainly in low-priced stocks. It invests in US stocks and non-US Stocks. The fund has assets totaling almost $42 billion invested. Its expense fee is only 0.98%. The portfolio turnover rate is 12%. The current dividend yield is 0.98%. The fund is part of Morningstar’s Large Blend category. The fund manager is Joel Tillinghast.

More: Vanguard’s Best 401k Funds

As one of Fidelity’s best 401k funds, this equity fund has returned 13.66% over the past three years, 14.26% over the past five years and 8.48% over the past decade. In 2015, it has year to date return of -0.27%.

As of September 2015, the top 5 stocks in its portfolio are UnitedHealth Group Inc, Next PLC, Seagate Technology PLC, Microsoft Corp, and Best Buy Co Inc. Top 3 sectors are consumer cyclical, technology, and financial services.

Fidelity Puritan Fund (FPURX)

Fidelity Puritan Fund is a popular moderate allocation balanced fund. It invests mainly in common stocks, and fixed income. The fund managers are Ramin Arani, Harley Lank, and Michael Plage. This fund has low expense fee of 0.56%. It has $24 billion of assets.

More: Best 401k Funds For 2015 & 2016

This best 401k fund is ranked with 5 stars and bronze rating by Morningstar. In 2015, it has year-to-date return of -0.90%. This top mutual fund has returned 9.52% over the past 3 years, and 10.51% over the past 5 years.

The top 5 holdings are:

1. High Yield Debt Securities Directly Held
2. Apple Inc
3. Google Inc Class C Capital Stock
4. Allergan PLC
5. Visa Inc Class A

Fidelity Total Bond Fund (FTBFX)

This Fidelity Total Bond Fund utilizes its assets to buy debt securities of all types and repurchase agreements for those securities. Its expense fee is 0.45%. Total assets are $20 billion.  The yield is 2.87%.

Morningstar has ranked this fixed income fund with gold rating. As one of the Fidelity’s best 401k funds, it has a 3 year average return of 2.18%.

Previous articles:

• Fidelity’s Best 401k Funds
• Fidelity’s Best 401k Funds: Part 3