Fidelity’s Best 401k Funds: Part 3

This post is part 3 of Fidelity’s best 401k funds article. The top mutual funds are Fidelity Blue Chip Growth Fund, Fidelity Capital & Income Fund, etc.

Best 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 & part 2 articles, 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 10/17/2015

Fidelity Blue Chip Growth Fund (FBGRX)

The Fidelity Blue Chip Growth Fund invests mainly in common stocks of blue chip companies. It has $19 billion of assets. The yield is 0.11%. The annual expense fee is 0.80%. The fund manager is Sonu Kalra since 2009. The current share price is $67.70.

More: Best Fidelity Mutual Funds 2015

Morningstar has ranked this best Fidelity fund with 5 stars and bronze rating. The average 3 years return of 17.40 percent. It has returned 7.19 percent over the past year, and 17.43 percent over the past 5 years. The minimum initial investment is $2,500.

As of September 2015, the top 5 stocks are Apple Inc, Google Inc Class A, Amazon.com Inc, Facebook Inc Class A, and Gilead Sciences Inc. Top 3 sectors are technology, consumer cyclical, and healthcare.

Fidelity Spartan International Index Fund Investor (FSIIX)

Fidelity Spartan International Index Fund is a popular index fund. It has a low expense fee of 0.20%. The current yield is 2.66%. With assets of $14 billion, it uses an investment style of large blend. This fund invests mainly in common stocks included in the MSCI EAFE Index.

Ranked with silver rating by Morningstar, it has 3 years annualized return of 5.83 percent. In 2015, it has year to date return of -1.77%. It has returned 5.21 percent over the past 5 years, and 3.44 percent over the past 10 years. You can invest this Fidelity fund in your 401(k) account.

Top 5 stocks in its holdings are:

1. Nestle SA
2. Novartis AG
3. Roche Holding AG Dividend Right Cert.
4. Toyota Motor Corp
5. HSBC Holdings PLC

Fidelity Capital & Income Fund (FAGIX)

Fidelity Capital & Income Fund is ranked with 5 stars rating by Morningstar. As one of the top Fidelity pick funds, it invests in equity and debt securities. It has a high dividend yield of 4.01%. Its expense ratio fee is 0.72% per year. This no sales load fund is managed by Mark Notkin since 2003.

The fund performance for the past 5 years is as follows:

• Year 2015: 1.83 percent (YTD)
• Year 2014: 6.13 percent
• Year 2013: 9.71 percent
• Year 2012: 16.40 percent
• Year 2011: -1.89 percent