Fidelity Magellan Fund (FMAGX)

Fidelity Magellan fund is one of the Fidelity flagship mutual funds. This fund was managed by Peter Lynch from 1977 to 1990. Lynch managed to achieve 29% annualized return for this period. As part of large growth mutual funds, this Fidelity Magellan fund has become one of the laggard mutual funds for the past decade.

Fidelity Magellan (MUTF: FMAGX)

The investment objective of Fidelity Magellan fund is to provide capital appreciation. This large growth mutual fund invests mainly in common stocks of domestic and foreign issuers. It may invest in either growth stocks or value stocks or both using fundamental analysis of factors. Management will use financial condition and industry position of companies, and market & economic conditions to select investments.

Fund Profile
  • Inception Date: 05/02/1963
  • Ticker Symbol: FMAGX
  • CUSIP: 316184100
  • Beta (3yr): 1.13
  • Rank in category (YTD): 97%
  • Category: Large Growth
  • Distribution: 0.64%
  • Capital Gains: 0%
  • Expense Ratio: 0.59% 
  • Net Assets: $ 15.47 billion
  • Number of Years Up: 37 years
  • Number of Years Down: 11 years
  • Annual Turnover Rate: 42.00%
Updated on 5/11/2012

Fidelity Magellan
This Fidelity fund has total net assets of $15.47 billion. This popular stock fund has a dividend yield of 0.64%. It is currently under the management of Jeffrey S. Feingold. He started managing this fund in September 2011. This fund has low annual expense ratio of 0.59% compared to the average annual expense ratio in Large Growth category (1.29%). The annual holdings turnover as of January 5, 2012 is 42.00%.

Note: Other popular Fidelity Mutual Funds are: Fidelity Puritan, Fidelity Contrafund, Fidelity Growth Company.

This FMAGX fund has 1-star rating from Morningstar. Since its inception in 1963, this fund has recorded 37 years of positive return and 11 years of negative return. The best 1-year total return was achieved in 2009 with 41.13%. The YTD return of this US stock fund is -11.55%. The 5-year average return is -3.34%. The performance of this fund based on the load adjusted return is as follow:
  • 1-year: -11.55%
  • 3-year: 11.95%
  • 5-year: -3.34%
  • 10-year: -0.14%
If you are interested to invest in this large growth fund, you 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 needed. This fund is a no-load fund. Meaning there is no 12b1 fee and no front-end sales load fee. This fund can be purchased from 73 brokerages such as JPMorgan, Merrill Lynch, T Rowe Price, Fidelity Retail Funds Network, Schwab Retail, Firstrade, etc.

The top 10 holdings of this fund as of September 30, 2011 are Apple Inc, Google Inc, Inc, Wells Fargo & Co, Cognizant Tech Solution, Chevron Corp, Exxon Mobil Corp, Occidental Petroleum Corp, Procter & Gamble Co and Green Mountain Coffee Roaster Inc. These top 10 holdings represent 24.10% of the total portfolio from 266 total holdings.

The principal investment risks include stock market volatility, foreign exposure, issuer-specific changes, etc.

Pros & Cons

Advantages of investing in this Fidelity fund are:
  • Low minimum initial investment of $2,500
  • Popular investor choice with big total net assets
Disadvantages are:
  • Doesn’t have a good long term record since Peter Lynch left
  • Rated with 1 stars rating by Morningstar
  • This fund is under new manager since September 2011
Disclosure: No Position

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