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4 Best Fidelity Mutual Funds for December

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The volatility witnessed in equity markets in recent times might shift investors’ attention to the mutual finds market, amid U.S.-China trade spat, the possible implementation of higher Fed rates and an uncertain oil market.

Fidelity mutual funds may get more attention in the months to come as they offer a broad spectrum of investment options that lead to risk adjusted returns. Investment options range from actively managed funds to sector-based funds.

What is Fidelity Mutual Fund?

Fidelity has been operating for more than 70 years. The company provides investment advice, planning and management services, discount brokerage services, retirement planning services, life insurance plans etc to its clients. One of its major sources of income is mutual funds.

Fidelity offers among its other investment options two well-known mutual funds. the Magellan fund and Contrafund (FCNTX - Free Report) . Magellan was introduced in 1963 and gained prominence when Peter Lynch took over as manager in 1977, taking the fund’s assets from $18 million to $14 billion in 1990. Contrafund started trading in 1967 and is worth $112 billion. William Danoff is managing the fund for the last 27 years.

Advantages of Investing in Fidelity Mutual Funds

A key reason to invest in Fidelity mutual fund now is its ability to survive market turbulence. The fund’s strong performance has been a result of efficient fund management combined with a variety of investment options.

Fidelity Investments has also been bestowed with the Best Online Broker award for the fourth consecutive year in 2018. Fidelity mutual funds often pose a serious challenge to its rivals such as Vanguard in terms of low-fees.

For instance, the company’s S&P 500 index fund (FXAIX - Free Report) has no minimum investment requirement and carries a net expense ratio of 0.02% while Vanguard’s S&P 500 mutual fund (VFINX - Free Report) carries a net expense ratio of 0.14%.

Why Invest in Mutual Funds and Not Stocks

If you are seeking investments that are shielded from market dips, mutual funds could be your safe haven. Mutual funds are safer than stocks by virtue of their nature. Diversification ensures a reduction of risk in these fund investments.

Mutual funds pool a lot of stocks (in case of a stock fund) that lowers risks emanating from a downward movement in equity markets. This is because the broad range of stocks involved in the mutual fund may not react similarly to market volatility.

In the current market scenario, mutual funds could be a safe bet.

Mutual Funds to Buy

Fidelity Magellan (FMAGX - Free Report) seeks growth of capital by investing primarily in common stocks of U.S. as well as non-U.S.-based companies. FMAGX invests in growth and value stocks or a combination of the two.

This Sector – Large Cap Blend product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.

FMAGX has a Zacks Mutual Fund Rank #1 (Strong Buy) and an annual expense ratio of 0.69%, which is below the category average of 1.08%. The fund has three and five-year returns of 10.7% and 11.4%, respectively.

Fidelity Select Portfolio Medical Technology And Devices (FSMEX - Free Report) boosts its capital by investing 80% of its funds in companies that are pursuing research, manufacture, supply and distribution or sale of medical equipment and related devices.

This Sector – Health product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.

FSMEX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.75%, which is below the category average of 1.28%. The fund has three and five-year returns of 19.9% and 18.9%, respectively.

Fidelity Real Estate Income (FRIFX - Free Report) seeks more than average income and capital growth is secondary in its priority. The fund primarily invests in common and preferred stocks of REITs and mortgage-backed securities etc.

This Sector – Real Estate product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.

FRIFX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.77%, which is below the category average of 1.21%. The fund has three and five-year returns of 6.3%.

Fidelity Series Real Estate Income (FSREX - Free Report) primarily invests in common and preferred stocks of REITs and debt securities of real estate bodies etc.

This Sector – Real Estate product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.

FSREX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.63%, which is below the category average of 1.21%. The fund has three and five-year returns of 5.97% and 6.15%, respectively.

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