While wagering on individual ideas often features the highest reward potential, many turn to mutual funds such as those under Fidelity Investments for exposure to a basket of stocks. Even better, the diversity of offerings means that the company features an array of choices for nearly any investing strategy. Let’s take a look at some of the best Fidelity funds for aggressive investors.
Unlike exchange-traded funds, which are passively managed, mutual funds are actively managed, thereby leading to higher costs. Arguably, though, that’s money well spent, as it goes in part to analysts deciphering the ebb and flow of the capital markets to find potentially the most profitable opportunities.
Of course, every investment category features its pros and cons. For mutual funds, they trade only once per day, right after the markets close at 4 p.m. EST. Therefore, if you’re an aggressive investor hoping to buy or sell shares of a Fidelity fund, that will be executed at the next available net asset value.
Still, in exchange for top-quality research and management, the tradeoff could be well worth it. If you’re in the market for higher-risk opportunities, you may want to consider the best Fidelity funds for aggressive investors.
Fidelity Large Cap Growth Enhanced Index Fund (FLGEX)
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If you’re looking for a basket of high-growth names but still desire the relative stability of large-capitalization companies, you should focus your attention on Fidelity Large Cap Growth Enhanced Index Fund (NASDAQ:FLGEX). Investing at least 80% of its assets in common stocks included in the Russell 1000 Growth Index, FLGEX features a net expense ratio of 0.39%, a favorable cost to the category average of 1.01%.
In terms of sector weighting, FLGEX is heavily biased toward the technology sector at 42.4%. Next comes consumer cyclical and communication services at 16% and 9.5%, respectively. The top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN).
On a year-to-date basis through the July 14 session, FLGEX has dropped 22%, which is below the benchmark S&P 500 index (a loss of 16% during the same period). However, if you want a mix of the biggest tech juggernauts in town, FLGEX is one of the best Fidelity funds for aggressive investors.
Featuring a balance between the large players and the small upstarts, the Fidelity Mid-Cap Stock Fund (NASDAQ:FMCSX) delivers a “diverse basket of domestic stocks with market capitalizations between $1 billion and $10 billion. As the very category of mid-cap suggests, these companies share some characteristics with smaller firms, and others with larger firms.”
Because of the extra analysis that goes into this fund, the FMCSX’s net expense ratio of 0.79% is noticeably higher than the aforementioned Fidelity Large Cap Growth. However, it’s also below the category average of 1.04%.
In terms of sector weightings, FMCSX concentrates heaviest on financial services at 20.4%, followed by industrials and energy at 14.3% and 12.7%, respectively.
The top individual name held is EQT Corporation (NYSE:EQT), which specializes in natural gas. First Horizon (NYSE:FHN) and Hess (NYSE:HES) round out the top three.
Fidelity Small Cap Discovery Fund (FSCRX)
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For investors that really want to dial up their risk-reward profile, they can look into Fidelity Small Cap Discovery Fund (NASDAQ:FSCRX). According to its prospectus, “the fund normally invests at least 80% of assets in securities of companies with small market capitalizations,” particularly companies that would be found in the Russell 2000 or the S&P 600.
What makes FSCRX an interesting candidate among the best Fidelity funds for aggressive investors is the net expense ratio of 0.97%. For an actively managed fund in the small-cap arena, that’s a fairly solid deal. As well, the category average is 1.05%.
In terms of sector weighting, FSCRX is geared toward financial services at 16.8%, followed by industrials and technology at 15.8% and 15.6%, respectively. The healthcare sector is also up there at 13.2%.
Finally, the top holding as of this writing is Insight Enterprises (NASDAQ:NSIT), with Jones Lang LaSalle (NYSE:JLL) andValvoline (NYSE:VVV)rounding out the top three.
One of the best Fidelity funds for aggressive investors seeking a blended investment, the Fidelity Growth & Income Portfolio (NASDAQ:FGRIX) features a “a diversified domestic equity strategy that seeks to maintain a higher dividend yield and higher earnings growth than the S&P 500 Index.” Given the devastating impact of soaring inflation on real earnings for fulltime workers, FGRIX is extremely relevant.
Even better, this fund features a very reasonable net expense ratio of 0.58%, comparing favorably to the category average of 0.97%. In terms of sector weightings, FGRIX is most biased toward financial services at 19.8%, followed by technology and industrials at 16.7% and 14.7%, respectively. Also, healthcare plays a significant role in this fund with a weighting of 14.4%.
In terms of top holdings, oil and gas giant Exxon Mobil (NYSE:XOM) leads the charge at 7.1%. Microsoft and Wells Fargo (NYSE:WFC) round out the top three at 6.1% and 5.2%, respectively.
Fidelity U.S. Sustainability Index Fund (FITLX)
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Although the topic here is best Fidelity funds for aggressive investors, that doesn’t mean you can’t seek profitability while doing so responsibly. For speculators with a conscience, the Fidelity U.S. Sustainability Index Fund (NASDAQ:FITLX) provides intriguing exposure.
According to its prospectus, the “fund normally invests at least 80% of assets in securities included in the MSCI USA ESG Leaders Index, which represents the performance of stocks of large- to mid-capitalization U.S. companies with high environmental, social, and governance (ESG) performance relative to their sector peers.”
Moreover, the net expense ratio of FITLX is only 0.11%, which is very low for a mutual fund. Indeed, the category average is 0.87%.
For sector weightings, FITLX concentrates most on technology, accounting for 23.6%, followed by financial services (15.1%) and healthcare (14.5%). The top holding for the mutual fund is Microsoft at 10.7%. Electric vehicle manufacturer Tesla (NASDAQ:TSLA) and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) round out the top three (3.5% for TSLA and 3.7% for GOOGL and 3.5% for GOOG).
Fidelity OTC Portfolio (FOCPX)
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To truly maximize your return potential with mutual funds, the Fidelity OTC Portfolio (NASDAQ:FOCPX) may have no equal. According to its prospectus, “the fund normally invests at least 80 percent of its portfolio in stocks traded on the Nasdaq composite index or other over-the-counter markets. Typically, more than 25 percent of the fund will be invested in the technology sector.”
As you might imagine for one of the riskier names among the best Fidelity funds for aggressive investors, FOCPX features a net expense ratio of 0.8%, which is quite high. However, it’s still below the category average of 1.01%.
In terms of sector weightings, as of this writing, FOCPX is heavily geared toward the tech sector at 39.1%. Coming in a relatively distant second is communication services at 22.5% and consumer cynical is third at 14.5%.
Interestingly, the top two individual holdings are Microsoft and Apple. However, one of its larger individual holdings is Reliance Industries, which is currently not available to trade in the U.S. market.
Fidelity International Value Fund (FIVLX)
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Finally, to conclude this list of the best Fidelity funds for aggressive investors, Fidelity International Value Fund (NASDAQ:FIVLX) provides diverse exposure to international companies. While most financial advisors will recommend investors to stay closer to home and acquire shares of companies they know best, you can occasionally add some oomph to your portfolio with global entities.
You’ll want to keep in mind that the net expense ratio for FIVLX is the highest among the best Fidelity funds for aggressive investors at 1.01%. However, it’s not surprising. Since it’s dealing with international names and therefore markets, more research needs to be conducted.
The top holding in the FIVLX is energy giant Shell (NYSE:SHEL) at 3.8%, followed by BHP Group (NYSE:BHP) and TotalEnergies (NYSE:TTE). It’s fair to point out that FIVLX, despite its exposure to high-flying energy companies, is down 16% YTD. Still, that’s on par with the S&P 500. Should energy prices rise again, FIVLX could right its ship rather quickly.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
The ClearBridge Aggressive Growth Fund (Ticker: SHRAX) is one example of an aggressive growth fund available for both retail and institutional investors. As of March 2022, the Fund holds $5.7 billion in assets and had a year-to-date return of -8.7% versus a return of -9.25% for its benchmark Russell 3000 Growth Index.
Fidelity Balanced Fund (FBALX) While no mutual fund is risk-free, one of the safer Fidelity funds is this balanced fund, which carries average risk but generates high returns. About 62% of its holdings are in stocks, with the rest in bonds and other debt securities.
Fidelity Large Cap Growth Index Fund (FSPGX) is a good option for investors looking to invest in a large-growth portfolio. Other recommended Fidelity funds include Fidelity Large Cap Core Enhanced Index Fund (FLCEX), Fidelity 500 Index Fund, Fidelity Mid-Cap Stock, and Fidelity Equity-Income Fund.
While Vanguard stands out with its suite of funds, the brokerage is more limited when it comes to other offerings. However, it does allow investors to trade individual stocks and bonds. Conversely, Fidelity allows clients to invest in individual stocks, bonds, ETFs, options, mutual funds and more.
Small- and Micro-Cap Stock Investing. A portfolio's weight of high-risk asset classes such as stocks and equities tend to determine if it's an aggressive portfolio. ...
An aggressive portfolio seeks outsized gains and accepts the outsized risks that go with them. 1 Stocks for this kind of portfolio typically have a high beta, or sensitivity to the overall market. High beta stocks experience greater fluctuations in price than the overall market.
Yes, Fidelity Bank is insured by the FDIC, which insures up to $250,000 per depositor for every FDIC-insured bank. Since the FDIC began operations in 1933, no depositor has ever lost a penny of FDIC-insured deposits.
Performance and Cost. As the innovator of index funds, Vanguard offers an impressive range of index funds today with low expense ratios. Fidelity has a comparable selection of funds, but its fees generally aren't as competitive as Vanguard's. That said, Fidelity does offer some zero-cost funds for its own customers.
Bank accounts are FDIC insured up to $250,000. But at some brokerage firms (Fidelity included), it is now possible to have uninvested cash balances swept to multiple banks, making those balances eligible for up to $5 million of FDIC insurance coverage.
As a High Net Worth Representative, you will be focused on enhancing relationships with our high-net-worth clients who have assets of $250,000 to $1 million, and therefore have complex service and investment needs.
If you need a lot of money for retirement or want to live an opulent lifestyle, you should invest more aggressively. If your needs are lower, you can afford to be less aggressive. Ability to save. If you have a strong ability to save money, then you can afford to take less risk and still meet your financial goals.
If you're bugged by paying fees and looking for a wider variety of no-load, no-fee mutual funds, Charles Schwab might be a better option than Fidelity. Charles Schwab ranks No. 1 in the J.D. Power 2023 U.S. Full-Service Investor Satisfaction Study.
We're excited to announce that beginning January 2020, Amazon's 401(k) service provider is switching from Vanguard to Fidelity to make it easier for employees to help manage their 401(k) accounts.
What are the safest types of investments? U.S. Treasury securities, money market mutual funds and high-yield savings accounts are considered by most experts to be the safest types of investments available.
Aggressive investing is a term used to describe an investment strategy that carries a high level of risk with the potential for high returns. This type of investing is typically associated with stocks, mutual funds, exchange-traded funds (ETFs), options and futures, real estate, and alternative investments.
Cash and cash equivalents - such as savings deposits, certificates of deposit, treasury bills, money market deposit accounts, and money market funds - are the safest investments, but offer the lowest return of the three major asset categories.
Most sources cite a low-risk portfolio as being made up of 15-40% equities. Medium risk ranges from 40-60%. High risk is generally from 70% upwards. In all cases, the remainder of the portfolio is made up of lower-risk asset classes such as bonds, money market funds, property funds and cash.
Dave divides his mutual fund investments equally between four types of funds: Growth and income, growth, aggressive growth, and international. This lowers your investment risk because now you're invested in hundreds of different companies all over the world in a whole bunch of different industries.
How do you choose? It depends on why you want to invest. For retirement, options include a traditional IRA, Roth IRA, rollover IRA. For general investing and trading, investing for a big goal (like the down payment on a house), or simply giving your money the potential to grow, consider the Fidelity brokerage account.
Is it safe to keep more than $500,000 in a brokerage account? It is safe in the sense that there are measures in place to help investors recoup their investments before the SIPC steps in. And, indeed, the SIPC will not get involved until the liquidation process starts.
How Fidelity makes money. Fidelity makes money from interest on cash held in custody for clients, stock loans to short-sellers, and portfolio margining.
The answer depends on you and your investment goals. There's no reason you can't have accounts with both Fidelity and Vanguard (among others). You'll have two (or more) sets of statements to review, multiple phone numbers to remember, several websites to navigate and hundreds of funds to understand and monitor.
The Securities Investor Protection Corporation (SIPC) is a nonprofit organization that protects stocks, bonds, and other securities in case a brokerage firm goes bankrupt and assets are missing. SIPC protects each client up to $500,000, including up to $250,000 protection for cash awaiting investment.
What brokerage firms do billionaires use? Many very wealthy individuals use the top brokerage firms, such as Fidelity, Schwab, Vanguard, and TD Ameritrade, among others. They invest in private equity and hedge funds.
No access to futures or commodities: Fidelity does not support trading in futures, options on futures, commodities, or currencies, even though you can exchange currencies on the platform.
While Fidelity is privately held and doesn't release financial statements, it's widely regarded as financially solid and stable, with $8 billion of operating income in 2022.
Someone who has $1 million in liquid assets, for instance, is usually considered to be a high net worth (HNW) individual. You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth.
Retiring at 55 with $2.5 million is certainly feasible, as evidenced by the fact that this is far more than the vast majority of people have when they stop working. Only about 1 in 10 retirees have even $1 million saved, according to the Federal Reserve's Survey of Consumer Finances.
A high-net-worth individual (HNWI) is someone with liquid assets of at least $1 million. These individuals often seek the assistance of financial professionals to manage their money, and their high net worth qualifies them for additional benefits and investing opportunities that are closed to most.
While Vanguard stands out with its suite of funds, the brokerage is more limited when it comes to other offerings. However, it does allow investors to trade individual stocks and bonds. Conversely, Fidelity allows clients to invest in individual stocks, bonds, ETFs, options, mutual funds and more.
The number of 401(k) millionaires in Fidelity-managed plans is relatively small, just shy of 1.4 percent out of 21.5 million accounts. That segment peaked in 2021, at 442,000, with a median balance of $1.3 million, according to Mike Shamrell, vice president for workplace thought leadership for Fidelity.
By age 60, you should have eight times your salary working for you. By age 67, your total savings total goal is 10 times the amount of your current annual salary. So, for example, if you're earning $75,000 per year, you should have $750,000 saved.
The Portfolio's assets are allocated among underlying Fidelity index funds according to an allocation strategy that does not change over time. The Index Aggressive Growth Portfolio will be invested 100% in equity and commodity-related index funds at all times.
Log in to Fidelity, and select the account you're looking for.Click on “Investments” on the main menu.Click on “Change Investments” on the secondary menu. You'll need to change the current investments in your portfolio, as well as change your investment elections for any future contributions to this account.
The most common way to set up a three-fund portfolio is with: An 80/20 portfolio i.e. 64% U.S. stocks, 16% International stocks and 20% bonds (aggressive)An equal portfolio i.e. 33% U.S. stocks, 33% International stocks and 33% bonds (moderate)
If you need a lot of money for retirement or want to live an opulent lifestyle, you should invest more aggressively. If your needs are lower, you can afford to be less aggressive. Ability to save. If you have a strong ability to save money, then you can afford to take less risk and still meet your financial goals.
Available through The Fidelity Insurance Network®, immediate fixed income annuities provide1 a guaranteed stream of income for the rest of your life or a set period of time.
Rowe Price analysis suggests that 45-year-olds should have three times their current income set aside for retirement. This savings benchmark rises to five times current income at age 50 and seven times current income at age 55.
By age 50, you should have six times your salary in an account. By age 60, you should have eight times your salary working for you. By age 67, your total savings total goal is 10 times the amount of your current annual salary. So, for example, if you're earning $75,000 per year, you should have $750,000 saved.
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