5 Best Fidelity Funds

We Highlight 5 of the Best Fidelity Mutual Funds on the Market

Fidelity Investments Building Window
James Leynse/Corbis/Getty Images

With so many choices, selecting the best Fidelity funds is no easy task. Fidelity Investments is one of the biggest mutual fund companies in the world and is the number on retirement investing firm in terms of assets in retirement plans.

Fidelity has several outstanding index funds, sector funds, and almost any mutual fund type you can imagine. So when we had to narrow down to a list of the 5 best Fidelity funds, the process took a while to complete.

Without further ado, and in no particular order, here are...

The 5 best Fidelity Funds

  1. Fidelity Contrafund (FCNTX): This large-cap growth fund has one of the best managers in the mutual fund universe, Will Danoff, who has been at the helm of FCNTX for more than 25 years. This provides shareholders with assurance of a steady hand through challenging markets. FCNTX is often near the top of performance ranks in the large growth category and the 15-year return ranks in the top percentile, which means it beats 99% of category peers for the period.
  2. Fidelity Spartan U.S. Spartan 500 Index Fund (FUSEX): Vanguard Investments may have some of the lowest expense ratios on the market for index funds but Fidelity is strong competition in that market and sometimes are better than Vanguard's. FUSEX, which tracks the S&P 500 Index, has a rock bottom expense ratio of just 0.10%, which as of this writing was lower than that of Vanguard 500 Index (VFINX), at 0.16%.
  1. Fidelity Spartan U.S. Bond Index (FBIDX): Another one of the best index funds at Fidelity, FBIDX has a low expense ratio of just 0.22%, which is one of the lowest for bond funds like this that track the Barclays US Aggregate Bond Index. FBIDX makes a great stand-alone bond holding or it can be a good core holding in the fixed income portion of a portfolio.
  1. Fidelity Growth Company (FDGRX): Like FCNTX above, this is a large growth fund with top performance that benefits from a long time manager, who is Steve Wymer in this case, at the helm of FDGRX since 1997. As of this writing FDGRX was closed to new investors, which can be a good thing for existing shareholders but new investors will need to see if the fund has reopened before buying shares.
  2. Fidelity Strategic Dividend & Income (FSDIX): If you're looking for a stock fund that produces dividends, you can't get much better than this fund. FSDIX is a 5-star fund that concentrates its holdings on stocks that produce dividends, such as Johnson & Johnson (JNJ) and Chevron (CVX). Like our other featured Fidelity funds, FSDIX has historically been top performer.

While these are all top performers, they may not work well together in one portfolio because some of the funds have similar objectives. For diversification purposes, investors are wise to hold funds with varying objectives.

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.