Fidelity’s Best 401k Funds

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Find Fidelity’s best 401k funds. The top mutual funds are Fidelity Contrafund, Fidelity Balanced Fund, and Fidelity International Discovery Fund.

Top Mutual Funds

Fidelity Investments provides vast selection of mutual funds. As one of the largest American multinational financial corporations, it provides mutual funds, ETFs (Exchange Traded Funds), and index funds for investment.

Fidelity Funds cover all asset classes of mutual funds. The funds provide investment in domestic equity, foreign stocks, bonds, and balanced funds. You can also invest in specialized sectors, so you can find the mix of funds that helps you to achieve your strategic investment goals.

These best 401k funds are selected based on its performance, management, expense fee, and future potential. We also scan through various financial websites for your research.

Fidelity’s best 401k funds are:
    Fidelity’s Best 401k Funds
  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 10/11/2015

Fidelity Contrafund (FCNTX)

Fidelity Contrafund invests in securities of companies whose value the advisor believes is not fully recognized by the public. This top Fidelity fund has a yield of 0.24%. It has $106 billion of assets. The portfolio turnover rate is 45%. This fund is categorized in large growth. The fund manager is William Danoff.

More: Vanguard’s Best 401k Funds

Morningstar has ranked this Fidelity’s best 401k fund with 4 stars and silver rating. In 2015, it has year-to-date return of 4.13 percent. It has returned 6.35 percent over the past 1 year, 14.17 percent over the past 3 years, and 9 percent over the past 10 years.

As of September 2015, the top 5 stocks are Berkshire Hathaway Inc Class A, Facebook Inc Class A, Apple Inc, Wells Fargo & Co, and Google Inc Class A. Top 3 sectors are technology, financial services, and consumer cyclical.

Fidelity Balanced Fund (FBALX)

As one of the Fidelity’s best 401k funds, Fidelity Balanced Fund has a high dividend yield of 1.45%. It has $27 billion of assets. Its expense ratio fee is 0.56%. This moderate allocation fund is managed by Fidelity’s investment team. This best fund invests in stocks and bonds.

This balanced fund is ranked with 5 stars rating by Morningstar. You can invest in this fund with as little as $2,500 through your brokerage. This fund has a 3 year annualized return of 9.43 percent. The past 5 years performance is as follows:
  • Year 2015: -1.19% (YTD)
  • Year 2014: 10.37%
  • Year 2013: 20.50%
  • Year 2012: 12.90%
  • Year 2011: 1.68%
Top 5 holdings are High Yield Debt Securities Directly Held, Fidelity Cent Invt Portfolios, Apple Inc, Google Inc Class C Capital Stock, and JPMorgan Chase & Co. Top 3 stock sectors are technology, healthcare, and financial services.

Fidelity International Discovery Fund (FIGRX)

Fidelity International Discovery Fund is a popular mutual fund. It has a dividend yield of 0.65%. Its expense fee is 0.93% per year. This fund utilizes its assets to purchase non-U.S. securities. The fund manager is William J. Kennedy since 2004.

This Fidelity fund is ranked with 4 stars rating by Morningstar. This fund has a 3 years average return of 8.27 percent. It has returned 0.40 percent over the past 1 year, and 7.31 percent over the past 5 year.

Top 4 stocks in its portfolio are Novartis AG, Total SA, Unilever NV DR, and Housing Development Finance Corp Ltd. Top 3 sectors are financial services, healthcare, and consumer defensive.

Bonus: Fidelity Freedom 2020 Fund (FFFDX)

Fidelity Freedom 2020 Fund has $12 billion of assets. This Fidelity fund invests mainly in other Fidelity funds. This asset allocation fund invests mainly in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. The yield is 1.90%. The net expense ratio fee is 0.65%.

This mutual fund has a 3 year average returns of 5.76%. Top 5 funds in its portfolio are:
  • Fidelity Series Investment Grade Bond Fund
  • Fidelity Series Equity-Income Fund
  • Fidelity Series Growth Company Fund
  • Fidelity Series International Value Fund
  • Fidelity Series International Growth Fund
More:
  • Fidelity’s Best 401k Funds: Part 2
  • Fidelity’s Best 401k Funds: Part 3

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