6 Best Fidelity Mutual Funds To Invest In Now

Fidelity is among the top five largest fund families in the world. The brand has a strong reputation in no-transaction-fee funds with low expense ratios that provide access to popular market segments. An example is the Fidelity 500 Index Fund, which is the third-largest U.S. mutual fund in terms of net assets.

There are more than 2,100 Fidelity funds specializing in U.S. equities, plus hundreds of other choices for investors seeking debt and international exposure. Across that sizable catalog, six funds stand out as excellent wealth-building vehicles for novice investors with long timelines. Read on to meet those six Fidelity funds below.

Advantages Of Investing In Mutual Funds

Before diving into fund specifics, let’s touch on the advantages of mutual fund investing. The big ones are diversification and breadth of choice.

Billionaire investor Warren Buffett has said that diversification protects you against being wrong. He meant it in a negative sense, but the reality is that investors—even experienced ones—can be wrong more than they’re right. That is why diversification is an important risk-management strategy for most of us.

Mutual funds provide quick diversification. A single fund position holding hundreds of different assets is cheaper to buy and easier to manage than a portfolio of individual stocks.

Even better, the breadth of mutual funds available makes it easy to implement a targeted asset allocation, whether you want a two-fund portfolio or something more complex.

Criteria Used For Choosing These Fidelity Mutual Funds

With that context, let’s define the features that make our six best Fidelity mutual funds so attractive. All six meet the criteria below.

No transaction fees. The fund does not charge return-diluting sales loads.
Competitive expense ratios. The expense ratios in this group of funds range from 0.015% to 0.54%. While this is not a small variance, each fund is competitive on expenses relative to its investment strategy.
Four- or five-star Morningstar ratings. Morningstar ratings compare a fund’s historic record against its peers. The ratings do not guarantee future performance, but they do show how effective the fund has been to date.
No investment minimum. Funds with no investment minimum are easier to budget and more suitable for a broader range of investors.
Net assets of $8 billion or greater. Large funds with greater demand can usually be liquidated faster than niche funds.

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