Search

Fidelity Funds To Invest In

Updated: Apr 1


When I started my first full-time job after graduating college, I knew nothing of the world of investment. During the orientation when they talked about the 401k company matching, all I remember was hearing the phrase free money. At the time, I haven’t a clue what to invest in with my 401k or how it worked. I’m a first-generation immigrant so neither my family nor I knew anything about investing, much less a 401k retirement plan. Well, the company briefed me on the basics, and I understood that I just needed to stash away my money into my 401k so that I can retire. And I did exactly that by maxing out the 6% company matching and made sure the free money wasn’t going to waste.

My company had Fidelity as their broker. After logging in and trying to read and understand what I’m looking at and where to put my money, I quickly got overwhelmed with so many funds and options. I was clueless so I ended up putting everything in the company stock. Hey, what could go wrong? This is a reputable company after all. It didn’t take long for me to observe that my 401k was only good if the company was performing well and vice versa if the company performed poorly. I actually got very lucky, and the company stock performance continued to rise even after I left the company. I kept everything as-is in my account during and after the transition to the new job and didn’t tend to my first 401k after that.

Many wiser years later, I realized that it was a bad investment strategy to have your entire portfolio dependent on one stock. I’m sharing my mistakes now in hopes that they’ll help you out on your investment journey. For in the game of investing, it’s never too late to start over.


Now let’s begin with how to read these Fidelity funds and understand what they do.

When you open Fidelity and search for the fund or stock ticker, it will give you a screen like below. Here I labeled each section so this way you can follow along easier.


  1. The fund name and ticker, this case FXAIX (FIdelity 500 Index Fund)

  2. Performance: this shows the average past annual returns if you hold this.

  3. It gives you the Year To Date (YTD) return which is 3.91%.

  4. 1 year average return is 31.29%

  5. 3 years average return is 14.13%

  6. 5 years average return is 16.81%

  7. 10 years average return is 13.42%

  8. Expense Ratio: This is the fee percentage where they charge you to manage this fund. In this case, the fee is .015 % which is $0.15 per $1000, you can click on the Fees & Distribution tab to see the details. When looking to investing in funds the lower the fees the better it is for you when you have a large portfolio.

  9. Minimum to Invest: This section is the minimum dollar requirement to reinvest in this fund. This fund has $0, while some funds require a minimum of $3,000 or more.

  10. Top 10 Holdings: This section shows a quick look at the top 10 holdings and the percentage of those holdings made up for the fund. It also shows how many holdings are there in the fund, here there are 508 stocks or companies this fund is invested in.

  11. Hypothetical Growth of $10,000: This shows a quick chart of the growth if you were to invest 10k in this fund and for 10 years it would turn to 35k.

  12. Fund Inception: This shown how old the fund is.

  13. The Performance & Risk: This tab will give you a detailed calculation of average returns and comparing to other similar funds or the market. It also has the percentage returns for each past year so you can compare this to other funds. It will look something like the below screenshot.


Now that we got that out of the way. Let's looks into which funds would maximize the growth for our investment to reach retirement.

This data is as of March 2021, the information will changes in the future as the stock market goes up and down. Below are the 10 funds I think you should look at.



#1 Fidelity Total Market Index Fund (FSKAX)


As the name says, Total Market, this fund is to mimic the Dow Jones U.S. stock market, currently, this fund consists of 3532 companies. The 22.33% of this fund is made up of the top 10 holdings such as AAPL, MSFT, AMZN, FB, TSLA, GOOGL, GOOG, BRK/B, JNJ, and JPM.

The FSKAX has an expense ratio of 0.015% with NO minimum to start investing in the fund. The 1st year average returns of 35.5% with the 10 years returns of 13.42%, and lifetime average returns of 8.42%.


#2 Fidelity ZERO Total Market Index Fund (FZROX)


As the name says, Total Market, this fund is to mimic the Dow Jones U.S. stock market, currently, this fund consists of 2442 companies. The 22.71% of this fund is made up of the top 10 holdings such as AAPL, MSFT, AMZN, FB, TSLA, GOOGL, GOOG, BRK/B, JNJ, and JPM.

The FZROX has an expense ratio of 0% with NO minimum to start investing in the fund. The 1st year average returns of 35.16%. The Fund is younger than 10 years so from my perspective the there is not enough data to estimate the long terms returns. Even though Fidelity listed a percentage for lifetime returns I don't think that is accurate.


#3 Fidelity 500 Index Fund (FXAIX)


As the name says, 500 Index, this fund is to mimic the S&P 500 Index U.S. stock market, currently, this fund consists of 508 companies. The 22.71% of this fund is made up of the top 10 holdings such as AAPL, MSFT, AMZN, FB, TSLA, GOOGL, GOOG, BRK/B, JNJ, and JPM.

The FSKAX has an expense ratio of 0.015% with NO minimum to start investing in the fund. The 1st year average returns of 31.29% with the 10 years returns of 13.42%, and lifetime average returns of 10.73%.


#4 Fidelity Small Cap Index Fund (FSSNX)


The fund focus on small-capitalization US companies with market caps between $300 million and $2 billion. This fund strategy is to try to mimic the Russell 2000 Index, currently, it holds 2050 stocks. The 4.05% of the fund is made up of PENN, CZR, PLUG, RUN, MRTX, DAR, RARE, DECK, IIVI, and ARWR.

The FSSNX has an expense ratio of 0.026% with NO minimum to start investing in the fund.

The 1st year average returns of 51.04%. The Fund is younger than 10 years so from my perspective the there is not enough data to estimate the long terms returns. Even though Fidelity listed a percentage for lifetime returns I don't think that is accurate.



#5 Fidelity Small Cap Growth Fund(FCPGX)


Like the Fidelity Small Cap Index Fund (FSSNX), this fund tries to mimic the Russell 2000 Index, currently, it holds 238 stocks which is more high risk because of lower holdings. The 12.50% of the fund is made up of STEPSTONE CL A(180 DAY LOCKUP), PODD, SITM, CROX, CZR, TGTX, AEO, COMPASS INC SER E PC PERP PP, KORNIT DIGITAL LTD, and LIND.

The FCPGX has an expense ratio of 0.011% with NO minimum to start investing in the fund. The 1st year average returns of 54.78% with the 10 years returns of 16.31%, and lifetime average returns of 13.67%.



#6 Fidelity Mid Cap Growth Index Fund (FMDGX)


The fund focus on mid-capitalization US companies with market caps between $1 billion and $8 billion. This fund strategy is to try to mimic the Russell Midcap Growth Index, currently, it holds 349 stocks. The 11.71% of the fund is made up of IDXX, ALGN, SPOTIFY TECHNOLOGY SA, KLAC, DOCU, LULU, TWLO, CMG, CDNS, and VEEV.

The FMDGX has an expense ratio of 0.050% with NO minimum to start investing in the fund. The 1st year average returns of 45.47%. The Fund is younger than 10 years so from my perspective the there is not enough data to estimate the long terms returns. Even though Fidelity listed a percentage for lifetime returns I don't think that is accurate.



#7 Fidelity Large-Cap Growth Index Fund (FSPGX)


The fund focus on large-cap corporations US companies with market caps between $10 billion and greater. This fund strategy is investing heavily in mature companies with less volatility, currently, it holds 456 stocks. The 44.20% of the fund is made up of AAPL, MSFT, AMZN, FB, TSLA, GOOGL, GOOG, V, MA, and NVDA.

The FSPGX has an expense ratio of 0.035% with NO minimum to start investing in the fund. The 1st year average returns of 44.13%. The Fund is younger than 10 years so from my perspective the there is not enough data to estimate the long terms returns. Even though Fidelity listed a percentage for lifetime returns I don't think that is accurate.



#8 Fidelity Blue Chip Growth Fund (FBGRX)


The fund focus on blue-chip companies (companies that, in FMR's view, are well-known, well-established, and well-capitalized) US companies. This fund strategy is investing heavily in mature companies with less volatility, currently, it holds 490 stocks. The 44.20% of the fund is made up of AAPL, MSFT, AMZN, GOOGL, FB, TSLA, NVDA, MARVELL TECHNOLOGY GROUP LTD, XRM, LYFT.

The FBGRX has an expense ratio of 0.790% with NO minimum to start investing in the fund. The 1st year average returns of 72.9% with the 10 years returns of 19.43%, and lifetime average returns of 13.23%.



#9 Fidelity Growth Company Fund Class K (FGCKX)


The fund invests primarily in common stocks of domestic and foreign issuers that Fidelity Management & Research Company LLC (FMR) believes offer the potential for above-average growth, currently, it holds 520 holdings. The 41.63% of the fund is made up of AAPL, MSFT, AMZN, FB, TSLA, NVDA, LULU, GOOGL, SHOP, and CRM.

The FGCKX has an expense ratio of 0.750% with NO minimum to start investing in the fund. The 1st year average returns of 76.73% with the 10 years returns of 20.43%, and lifetime average returns of 14.90%.



#10 Fidelity Dividend Growth Fund (FDGFX)


The fund primarily invests in growth and value companies that pay dividends or with the potential to pay dividends in the future, currently, it holds 140 holdings. The 24.20% of the fund is made up of MSFT, V, AAPL, UNH, JPM, DIS, AVGO, BAC, FIS, and SAMSUNG ELECTRONICS CO LTD.

The FDGFX has an expense ratio of 0.490 % with NO minimum to start investing in the fund. The 1st year average returns of 23.1 % with the 10 years returns of 9.51 %, and lifetime average returns of 10.42%.




Final Thoughts:


I wished someone had explained the basic investment steps for me when I started corporate life, it would've helped my retirement account a lot. Now let's look into some strategy. Everyone investment strategies are different from one another, below are some strategy may be helpful to you.


1. Some may just invest in the Total Market and put:

100% in the Fidelity Total Market Index Fund (FSKAX).

2. Some may want more exposure to small, large cap and put:

50% Fidelity Total Market Index Fund (FSKAX)

25% Fidelity Small Cap Growth Fund(FCPGX)

25% Fidelity Growth Company Fund Class K (FGCKX)

3. Some may take high risk and put:

100% in the Fidelity Growth Company Fund Class K (FGCKX) or Fidelity Blue Chip Growth Fund (FBGRX), because they believe that the tech giants will continue to grow.

4. Some may want a bit of everything and put:

50% Fidelity Total Market Index Fund (FSKAX)

10% Fidelity Small Cap Growth Fund(FCPGX)

10% Fidelity Growth Company Fund Class K (FGCKX)

10% Fidelity Dividend Growth Fund (FDGFX)

10% Fidelity 500 Index Fund (FXAIX)

10% Fidelity Mid Cap Growth Index Fund (FMDGX)


Well, I hope that this has helped you in some way in choosing what funds to invest in. Just remember the stock market will always go up and down and if you consistently add money in each month and keep on investing in the long term you will set. Remember to invest safely and balance your investment.




*Disclaimer. I am not a financial advisor. The contents on this site are referenced as opinions and are for information purposes only. It is not intended to be investment advice. Please seek a duly licensed professional for investment advice.

58 views0 comments

Recent Posts

See All

FOR TIPS & TRICKS - SUBSCRIBE!

Disclaimer

 The contents on this site are referenced as opinions and are for information purposes only. It is not intended to be investment advice.  Please seek a duly licensed professional for investment advice.  We are not financial advisors. Everything posted is for educational purposes.

Calculation Disclaimer

Please do your own calculation and double-check the results. The tool is to give you a rough estimate number of specific scenarios. Our calculation formula may not give accurate results nor the correct formula was used.

  • Instagram
  • Facebook
  • Twitter
  • Pinterest

© 2020-Present by Habit to Wealth.