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3 Fidelity Mutual Funds to Buy Now for Long-Term Growth

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Fidelity Investments, based in Boston, MA, had $12.6 trillion in assets under management as of Dec 31, 2023. It caters to around 50 million individuals, and has more than over 24,000 businesses and 16,000 wealth management firms and institutions worldwide. Their team consists of over 74,000 employees located in nine countries across North America, Europe, Asia and Australia.

Fidelity Investments provides a range of mutual funds that are designed to meet various investment goals and risk appetites. These mutual funds do not have any transaction fees, making them a cost-effective investment option.

Investing in low-cost Fidelity mutual funds seems to be judicious as of now. Also, mutual funds, in general, diversify portfolios without several commission charges that are mainly associated with stock purchases and trim transaction costs (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

We have, thus, chosen three Fidelity mutual funds that investors should buy now for the long term. These funds possess a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and expense ratios considerably lower than the category average. So, these funds have provided comparatively strong performance along with lower fees.

Fidelity Select Pharmaceuticals Port (FPHAX - Free Report) funds primarily invest in stocks of companies principally engaged in the research, development, manufacture, sale, or distribution of pharmaceuticals and drugs of all types. FPHAX advisors use fundamental analysis of factors like each issuer's financial condition and industry position, as well as market and economic conditions, to arrive at their investment decision.

Karim Suwwan de Felipe has been the lead manager of FPHAX since Jun 30, 2017. Most of the fund’s holdings were in companies like Eli Lilly and Co (24.1%), Novo Nordisk A/S (14.8%) and AstraZeneca PLC (9.4%) as of Nov 30, 2023.

FPHAX’s 3-year and 5-year annualized returns are 8.6% and 12.9%, respectively. Its net expense ratio is 0.73% compared to the category average of 1.12%. FPHAX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.

Fidelity Magellan Fund (FMAGX - Free Report) primarily invests the majority of its net assets in common stocks of domestic and foreign issuers. FMAGX invests both in growth and value stocks, and its advisors use fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions for their investment purposes.

Sammy Simnegar has been the lead manager of FMAGX since Feb 22, 2019. Most of the fund’s holdings were in companies like Microsoft Corp (8.5%), NVIDIA Corp (4.4%) and Unitedhealth Group Inc (2.9%) as of Jun 30, 2023.

FMAGX’s 3-year and 5-year returns are 9.1% and 14.3%, respectively. The annual expense ratio is 0.45% compared to the category average of 0.95%. FMAGX has a Zacks Mutual Fund Rank #1.

Fidelity Advisor Technology (FADTX - Free Report) fund invests in companies primarily focused on utilizing or developing products, processes, or services that will directly benefit from technological advancements and innovations. FADTX advisors use fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions for their investment purposes.

Adam Benjamin has been the lead manager of FADTX since Jul 19, 2020. Most of the fund’s holdings were in companies like Microsoft Corp (19.3%), NVIDIA Corp (16.4%) and Apple Inc. (13.6%) as of Oct 31, 2023.

FADTX’s 3-year and 5-year returns are 10.7% and 25.2%, respectively. The annual expense ratio is 0.98% compared to the category average of 1.02%. FADTXhas a Zacks Mutual Fund Rank #1.

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