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Related topics: Fidelity, 401k, mutual funds, Vanguard, retirement

By making two moves early this year, you can get more from your 401k: Make the maximum contribution to your company's 401k plan, and invest in funds that have the lowest possible expense ratio, which puts more of your money to work.

With that in mind, here are seven proven Fidelity funds that belong in your portfolio. The funds can be combined into two types of risk-adjusted portfolio -- one targeting aggressive growth and the other designed to provide growth and income. Which type is best for you will depend on your age and risk tolerance.

Fidelity Low-Priced Stock Fund

Fund manager Joel Tillinghast has rarely owned fewer than 800 stocks in his portfolio, and often owns more than 1,000. At last count, Fidelity Low-Priced Stock (FLPSX) had 907 holdings. Tillinghast buys stocks priced at $35 a share or less, which increases the likelihood of small- and mid-cap investments in bull markets, but in bear markets can net him companies of virtually any size.

His long-term record has been one of solid, consistent performance. Average annual total returns over the last 10 years exceed 11%, almost double the performance of its Russell 2000 ($RUT.X) benchmark. Many of Tillinghast's top holdings come from the health care, consumer services and technology sectors. Among his top holdings: UnitedHealth (UNH, news), home health provider Lincare Holdings (LNCR, news), Oracle (ORCL, news) and Safeway (SWY, news).

Fidelity Focused Stock Fund

Manager Stephen DuFour invests in a concentrated portfolio of 45 stocks, mainly large-cap growth and value stocks. The top 10 holdings and sector weightings of the Fidelity Focused Stock Fund (FTQGX) reveal his focus on an expected recovery of U.S. and global consumers.

As a growth investor, DuFour looks for great companies trading at what he considers to be very good prices. DuFour said he looks for companies that have unit growth, pricing power, increasing margins and opportunities to expand their footprints.

The top three sectors are information technology (32%), industrials (22%) and consumer discretionary (12%). Among his top holdings are Union Pacific (UNP, news), Cummins (CMI, news), Edwards Lifesciences (EW, news), Estée Lauder (EL, news) and Perrigo (PRGO, news).

Fidelity Select Health Care

The national move toward health reform presents investors with opportunities. The Fidelity Select Health Care (FSPHX) fund is one way to make a low-risk, long-term growth play in the consumer sector. In 2010, the fund posted a gain of 17%, more than 4 percentage points better than the Standard & Poor's 500 Index ($INX). This $1.81 billion fund, managed by Edward Yoon, led the entire Fidelity health category.

Among its top holdings are Medco Health Solutions (MHS, news), Illumina (ILMN, news) and Covidien (COV, news).

There's a stealthy global growth story here; emerging-market demand for more and better health care is increasing, to the benefit of both the foreign companies in this fund and the U.S. companies that derive an increasing share of their sales in the burgeoning global marketplace.

While a few companies would be hurt by any changes in health care policy, the bottom line is that broader coverage provides access to bigger sales for many health care companies. Fidelity Select Health Care has a track record of being ahead of the sector trends, so it's likely to focus on the opportunities and avoid the pitfalls in the months ahead.

Fidelity Contrafund

This is one of Fidelity's most recognized funds. Since its inception in 1967, it has seen huge inflows. The Fidelity Contrafund (FCNTX) is managed by William Danoff, a highly regarded manager and proven contrarian investor.