The $61 billion fund posted a return of 16.3% in 2010, which is especially impressive considering its size.
Fidelity Global Balanced Fund
If you want exposure to equity and debt securities, this is the fund. The Fidelity Global Balanced (FGBLX) fund has 843 holdings from around the world, ranging from Japanese, Italian and German government bonds to U.S. companies like Exxon Mobil (XOM, news).
By policy, 25% of the fund is invested in fixed income, but the fund is also in the large-cap growth category. This gives investors exposure to global debt and equity. In a difficult environment in 2010, it posted a 10.4% return.
Fidelity Floating Rate High Income
If inflation increases in 2011, this bond fund can provide some protection. The Fidelity Floating Rate High Income (FFRHX) fund invests primarily in senior U.S. bank loans with rates that reset every three months. This allows the fund's yield and price to rise if short-term rates rise.
The fund invests primarily in loans made to weaker companies, but manager Christine McConnell says her analysts examine loans to avoid those that may fail. The average maturity of its investments is less than five years, and the fund yields 3.5%.
Its annualized return over the past three years was 5.24%.
The investment seeks a high level of income. It normally invests at least 80% of assets in floating-rate loans, which often are lower-quality debt securities, and other floating-rate securities.
Fidelity Dividend Growth
Dividend growth has become a very popular goal for investors looking for greater returns. The Fidelity Dividend Growth (FDGFX) fund ranks near the top of its class. Manager Larry Rakers invests in companies that he believes will initiate or increase their dividend payouts.
Foreign holdings make up about 15% of the fund. Its top three sectors are financials (18%), information technology (17%) and industrials (14%).
Making the funds work for you
The portfolios below both provide good sector diversification, and the allocations in each are designed to cushion overall portfolio risk.
The aggressive growth portfolio is well-suited to individuals who can tolerate more investment risk and portfolio volatility.
|Aggressive growth portfolio|
|Fidelity Low-Priced Stock||Mid-cap blend||25%|
|Fidelity Focused Stock||Large-cap growth||20%|
|Fidelity Select Health Care||Health||20%|
|Fidelity Contrafund||Large-cap growth||15%|
|Fidelity Global Balanced||World allocation||10%|
|Fidelity Floating Rate High Income||Bank loans||10%|
The growth and income portfolio is suited for investors nearing retirement. Its goal is capital appreciation and generating cash. This is considered an investment approach that strikes a middle path between aggressive growth and conservative capital protection.
|Growth and income portfolio|
|Fidelity Dividend Growth||Large-cap blend||25%|
|Fidelity Low-Priced Stock||Mid-cap blend||20%|
|Fidelity Contrafund||Large-cap growth||15%|
|Fidelity Global Balanced||World allocation||15%|
|Fidelity Floating Rate High Income||Bank loans||15%|
|Fidelity Focused Stock||Large-cap growth||10%|
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[BRIEFING.COM] The stock market began the last week of July on a quiet note with the S&P 500 ending less than a point above its flat line. Like the benchmark index, the Dow Jones Industrial Average (+0.1%) also posted a slim gain, while the Russell 2000 (-0.5%) and Nasdaq Composite (-0.1%) lagged throughout the session.
The major averages were awakened from their weekend slumber with an opening retreat that pressured the S&P 500 below its 20-day moving average (1975). Even though ... More
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