Fidelity contrafund minimum investment

Fidelity contrafund minimum investment DEFAULT

ADP Access Open Fund Architecture

Allowab (non-advisory)

Ameriprise Brokerage

Ameriprise SPS Advantage

Ameritas NTFN


Bear Stearns

Bear Stearns No-Load Transaction Fee

Cetera Advisor Networks LLC

Cetera Advisor Networks LLC- PAM, PRIME, Premier

Cetera Advisors LLC

Cetera Advisors LLC- PAM, PRIME, Premier

Cetera Financial Specialists LLC- Premier

Comerica Bank

CommonWealth NTF

CommonWealth PPS

Commonwealth (NTF - PPS/Advisory)

Commonwealth (PPS Access Program)

Commonwealth (PPS/Advisory)

Commonwealth Universe

DWS Retirement Sevs Investment Offerings

DailyAccess Corporation FRIAG

DailyAccess Corporation MATC

DailyAccess Corporation Matrix

DailyAccess Corporation Mid-Atlantic

DailyAccess Corporation RTC

DailyAccess Corporation Schwab

E TRADE Financial

E-Plan Services, Inc.

ETrade No Load Fee

FTJ FundChoice

Federated TrustConnect

Fidelity Institutional FundsNetwork

Fidelity Institutional FundsNetwork-NTF

Fidelity Retail FundsNetwork

Fidelity Retail FundsNetwork-NTF


H Beck Inc.

H&R Block Financial Advisors Inc

HD Vest

HD Vest - Vest Advisor

HSBC Brokerage (USA) Inc

ING Financial Advisers - SAS Funds

ING Financial Partners Inc.

ING Financial Ptnrs PAM and PRIME Approv

Investacorp NTF





Jiangsu Akcome Science & Technology Co Ltd

LPL SAM Eligible -


Lincoln Investment

Lincoln Investment Planning


MSSB MassMutual

MSSB Retail Fund

MSWM Brokerage

Matrix Financial Solutions

Merrill Edge

Merrill Lynch

Met Life Resources MFSP Alliance List

Mid Atlantic Capital Corp

Mid Atlantic Capital Group

Mony Securities Corp

Morgan Stanley - Brokerage Accounts

Morgan Stanley - Ntwk/Rdm Only-Brokerage

Morgan Stanley Consulting Group Advisor

Morgan Stanley Portfolio Management

NYLIM (k) Complete

Pershing FundCenter

Pershing Retirement Plan Network

Protected Investors of America NTF

Pruco Securities LLC -PruUMA’s Mutual Funds

Raymond James

Raymond James WRAP Eligible

Robert W. Baird & Co.

Royal Alliance

Schwab All (Retail, Instl, Retirement)

Schwab Institutional

Schwab RPS All

Schwab RPS SDE

Schwab Retail

Scottrade Load

Scottrade NTF

Scottrade TF

Securities America Advisors

Securities America Inc.

Shareholders Services Group

Standard Retirement Services, Inc.

Sterne, Agee & Leach, Inc.,

SunGard Transaction Network

T. Rowe Price

TD Ameritrade Institutional

TD Ameritrade Institutional NTF

TD Ameritrade Institutional Services

TD Ameritrade Retail

TD Ameritrade Retail NTF

TD Ameritrade Trust Company

TIAA-CREF Brokerage Services


Td Ameritrade, Inc.

Thrivent Advisory Eligible

Thrivent Retail Eligible

Trade PMR Transaction Fee

TradeStation Securities

UBS Financial Services Inc


Vanguard Load

Vanguard TF

WFA Fdntl Choice/PIM Updated

WFA MF Advisory Updated

WR Hambrecht Co LLC

Waddell & Reed Choice MAP Flex


Schwab's Financial and Other Relationships with Mutual Funds

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15 Best Fidelity Funds to Buy Now

Fidelity is one of the most iconic names on Wall Street, and Fidelity funds are among the most respected investment vehicles on the planet. 

The asset manager was established just after World War II and was one of the early leaders in the employer-led retirement plan space after the (k) made its debut roughly 40 years ago. Chances are you've owned a Fidelity product in some account or another across your investing life.

But with more than mutual fund options on top of dozens of exchange-traded products, where do you start if you're looking for the top Fidelity funds for your own personal goals?

Here are 15 of the best Fidelity funds that cover a wide variety of investing approaches. Whether you're interested in growth stocks or income from bonds, you're likely to find something that fits with your portfolio here – sometimes, in the same single fund!

Just keep in mind that all investing decisions are personal, and what works for one investor might not fit in perfectly with another. So always do your own research and act with your own unique goals and risk tolerance in mind.

Data is as of Aug. Dividend yields represent the trailing month yield, which is a standard measure for equity funds. There is no minimum to invest in any of the funds listed here.

1 of 15

Fidelity Index Fund

concept art
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %, or $ annually on every $10, invested

The U.S. stock market index of choice for the majority of investors is the Fidelity Index Fund (FXAIX, $). When it comes to Fidelity funds, FXAIX is one of the simplest ways to get broad exposure to the domestic equities market. 

As the name implies, it is benchmarked to the S&P Index, which is the top publicly traded corporations listed on U.S. stock exchanges. And its make up gives investors access to all the big names, including Microsoft (MSFT) and Apple (AAPL).

The major drawback, if there is one, is that the S&P is weighted by market capitalization. So trillion-dollar tech stocks like MSFT and AAPL represent more than 10% of the entire portfolio combined. And when you add up the top 10 positions, you get 27% or so of the fund's total assets. In this respect, the idea of the S&P being built by total companies doesn't tell the whole story; a small list of heavy hitters can move this index more than other stocks.

Still, many of these companies are big for a reason and investors might not be turned off by the weightings. Furthermore, while the makeup isn't terribly creative, the fees are incredibly cheap at just a few dollars a year for most investors.

Learn more about FXAIX at the Fidelity provider site.

2 of 15

Fidelity Nasdaq Composite Index Fund

Nasdaq superimposed over stacks of quarters and skyscrapers
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

If you're looking for an alternative index fund to the S&P , consider the Fidelity Nasdaq Composite Index Fund (FNCMX, $). FNCMX comprises roughly 3, stocks listed on the Nasdaq Composite exchange. 

As most investors probably know, the Nasdaq tends to be populated by more tech-oriented companies than the roughly year old New York Stock Exchange (NYSE). In fact, some of the biggest stocks on Wall Street, including Microsoft, Apple and (AMZN) are all Nasdaq-listed names.

Of course, this tech focus brings with it some challenges. Consider that the top 10 positions in this fund tally 44% of the entire portfolio to make it even more top-heavy than the FXAIX. Also, the tech sector and closely related telecom sector are the top two areas of focus, respectively, accounting for more than 57% of the fund's total assets.

This is not necessarily a bad thing for investors who really like the growth potential of high-tech stocks or the stability of mega-cap Silicon Valley icons. If that's your investing style, this is one of the best Fidelity funds for you. 

Learn more about FNCMX at the Fidelity provider site.

3 of 15

Fidelity Small Cap Index Fund

tiny piggy banks marching together
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

If you'd rather look past the typical mega-cap stocks that dominate the most prominent index funds, then consider the Fidelity Small Cap Index Fund (FSSNX, $). It is made up of roughly 2, stocks, with more than 87% having market values of roughly $2 billion or less.

Consider current holdings like hydrogen fuel cell company Plug Power (PLUG) or development-stage biopharmaceutical company Novavax (NVAX) as representative examples. Both companies are currently unprofitable as they invest heavily in future growth – but in the last 24 months, PLUG stock is up 1,% or so while NVAX is up 3,%!

Not every small-cap stock is destined for those kinds of gains, of course. These companies have higher risk profiles that also could result in larger potential losses than the more stable blue chips on Wall Street. But you also can score bigger rewards in the long run if the cards fall right.

Learn more about FSSNX at the Fidelity provider site.

4 of 15

Fidelity Mid Cap Index Fund

arrows hitting bullseye
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

What if rather than go big with Fidelity funds focused on the S&P or Nasdaq, you're looking for those "goldilocks" companies that are neither big nor too small? That's what the Fidelity Mid Cap Index Fund (FSMDX, $) provides, with an aim to invest in mid-cap stocks with market capitalizations that fall between about the $2 billion and $10 billion.

Some stocks get smaller than the low end of that range after declines and some get larger than the high end when they go on a short-term run. However, if those valuations change for a long enough period of time, then the stock will either graduate into a large-cap fund or be demoted to a small-cap fund to keep the strategy in line.

The resulting makeup of this stock fund is quite interesting, and truly diversified thanks to this narrow band of investments in the equity market. Specifically, no sector is worth more than about 20% of the total assets, with technology (%) at the top. Plus, every position is weighted at less than % of the portfolio at present. The top stocks currently are social media firm Twitter (TWTR) and animal healthcare company IDEXX Laboratories (IDXX) at % apiece.

Learn more about FSMDX at the Fidelity provider site.

5 of 15

Fidelity Select Technology Portfolio

technology concept
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

Speaking of narrow bands of the stock market, some investors might be less interested in sorting stocks by size and instead are interested in specific sectors.

While there is no shortage of tactical ETFs out there, the Fidelity Select Technology Portfolio (FSPTX, $) allows investors a mutual fund to play this high-growth sector – and one that does so in an active way instead of traditional index funds.

Right now, FSPTX owns just stocks. You'll find heavy weightings in fan favorites like Microsoft, but you'll also find $9-billion solar technology firm Sunrun (RUN) among its top 10 positions right now. That's not the typical makeup you'll find in a passive tech ETF.

Of course, fees are a bit steeper than a simple index fund that buys all the Silicon Valley giants. However, Fidelity funds have historically empowered active managers – so if you're concerned about some kind of shakeup in the market, the hands-on approach of FSPTX might provide some peace of mind.

Learn more about FSPTX at the Fidelity provider site.

6 of 15

Fidelity Select Health Care Portfolio

stethoscope on one-hundred dollar bills
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

Another sector-oriented fund that could be worth a look is the Fidelity Select Health Care Portfolio (FSPHX, $). As many investors know, healthcare is one of the more reliable sectors on Wall Street thanks to a constant flow of "customers" as people age and experience medical issues regardless of the macroeconomic outlook.

And without moralizing about the state of American healthcare, it's important to also acknowledge that inflation in U.S. healthcare costs is equally reliable. Consider that the typical American spends % more on insurance than they did roughly two decades ago, according to data company Clever.

If you want to follow that constant increase in spending, then why not focus on this sector? FSPHX provides a simple and diversified way to do so. The fund owns about total stocks, with top holdings right now including insurance giant UnitedHealthGroup (UNH), as well as mid-sized vascular device company Penumbra (PEN).

Admittedly, this is one of the Fidelity funds featured here that has lagged the broader market over the last year or so as the initial surge in healthcare stocks prompted by the pandemic has abated more recently. However, the fund's manager has been at the helm since and has a lot of experience riding the ups and downs of the sector with an eye on the long term.

Learn more about FSPHX at the Fidelity provider site.

7 of 15

Fidelity Blue Chip Growth Fund

stack of blue poker chips
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

If you like the notion of active management but want to look beyond sector funds, the Fidelity Blue Chip Growth Fund (FBGRX, $) might be right for you. FBGRX offers a way to get more strategic about your exposure to large U.S. stocks without limiting your approach to just one sector.

This Fidelity fund owns about or so blue-chip stocks. But lest you think this is just a mirror image of the FXAIX, it's important to point out the weightings and makeup are very different, even if many of the same names are on the list. 

Case in point: $billion ride sharing company Lyft (LYFT) cracks FBGRX's top 10 components, whereas, in a typical fund weighted by market capitalization, it would be dwarfed by trillion-dollar Silicon Valley stocks like Apple. Those top 10 components also represent a heck of a lot more of the portfolio in this top-heavy fund, currently at 45% of total assets.

This bias toward a short list of favorites is also evident in the sector breakdown of FBGRX. Of the 11 standard S&P sectors, six of them rate at roughly % weightings or less – with almost 82% of stocks spread across three sectors (technology at %, consumer discretionary at % and communication services at %).

There's obviously more risk when you go all-in on a short list of stocks or sectors. However, based on the fact this fund is up about % in the last five years versus roughly % for the S&P Index, clearly this approach can work when the environment is right.

Learn more about FBGRX at the Fidelity provider site.

8 of 15

Fidelity Contrafund

big yellow arrow pointing away from smaller white arrows
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

Fidelity Contrafund (FCNTX, $) is one of the big-name funds that has made this asset manager as dominant as it is. Over the last 20 years, Contrafund has regularly outperformed both the Dow Jones Industrial Average and the S&P Index to tack on a % return in that period.

A core holding for almost every long-term, growth-oriented portfolio, the fund holds a focused list of about or so top stocks. And more importantly, it isn't afraid to go with big weightings towards names it believes in.

Specifically, right now social media giant Facebook (FB) and e-commerce king collectively represent almost 19% of the entire portfolio between them. This shows both the blessing and the curse of this approach: while Facebook has put in a solid outperformance against the S&P so far in , AMZN has lagged.

When things go well based on the "secret sauce" that Contrafund deploys via its active-management style, FCNTX can handily exceed the standard passive funds out there. But keep in mind, this is one of the pricier Fidelity funds on this list, with the expenses here at 25 to 30 times the cheapest S&P index funds. Translation: FCNTX's outperformance needs to be consistent for this fund to be worth your while.

Learn more about FCNTX at the Fidelity provider site.

9 of 15

Fidelity Magellan Fund

person drawing on stock chart board with green arrow pointing up
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

Fidelity Magellan Fund (FMAGX, $) is more focused than the Contrafund, with less than 70 total positions. The approach is very much centered on domestic large-cap stocks. However, there is a smidge of international investments that are included in FMAGX, based on what the managers are interested in right now.

Those managers set the tone for the fund in a big way, as you can imagine. In fact, Magellan had one of the most enviable track records on Wall Street, as it experienced massive growth under the management of the iconic Peter Lynch from to

Unfortunately, Magellan has been out of step with the market lately as it has "only" tacked on about 21% in the last 12 months, compared with more than 30% for the major U.S. stock market indexes. And with an expense ratio that's pretty high, that underperformance is amplified when you layer on fees.

However, its fund manager insists this lagging short-term performance amid the coronavirus recovery trend should not dissuade investors from "longer-term trends in demographics and productivity" that continue to drive his core investing decisions. If you believe that and share this long-term view, then FMAGX might be one of the best Fidelity funds for you.

Learn more about FMAGX at the Fidelity provider site.

10 of 15

Fidelity International Discovery Fund

global financial markets concept
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

Looking overseas, Fidelity International Discovery Fund (FIGRX, $) is a core international holding for investors wanting growth, but also diversification beyond U.S. markets. Less than 3% of the fund's roughly stock portfolio is made up of domestic companies, with developed markets including Japan (15%) and the U.K. (13%) as the most influential regions.

That means a smattering of foreign but familiar names, including Switzerland-based drugmaker Roche Holding (RHHBY) and German industrial giant Siemens (SIEGY) near the top of the list of holdings. Emerging markets are also represented, accounting for about % of FIGRX's total asset allocation.

It's worth noting that over the last few years, U.S. stocks have handily outperformed the rest of the world. Specifically, Fidelity International Discovery is up just 50% or so since mid, while the S&P has roughly doubled in the same five-year period. 

However, if you don't expect this underperformance to continue or if you simply want to hedge your bets with diversification overseas, this actively managed global fund helps take the guesswork out of looking for international stocks.

Learn more about FIGRX at the Fidelity provider site.

11 of 15

Fidelity Dividend Growth Fund

stacks of quarters with a plant growing out of them
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

Another different "flavor" of stock investing is to look for companies that offer income via dividends, instead of just the potential for capital appreciation. Fidelity Dividend Growth Fund (FDGFX, $) offers this approach, with a narrow list of about large-cap dividend payers that the fund's managers think are the best-equipped to deliver long-term income, as well as reliable share price performance.

Right now, top holdings include growth-oriented digital payments giant Visa (V), as well as embattled industrial giant General Electric (GE). Long-term dividend investors might find this second stock less than appealing, given GE's history of dividend cuts since the financial crisis. However, this is a great example of how FDGFX tries to thread the needle between reliable plays like Visa, but also stocks like GE that managers expect to see significant dividend growth in the years ahead based on their projections of the business. And honestly, with GE only paying a penny per share in dividends, it's not like the distributions could get any smaller unless they are killed altogether.

The yield for FDGFX is slightly better than the typical S&P stock, currently sitting at about %. But as the name implies, this Fidelity fund is all about the potential for future dividend growth – so if the strategy pays off, your actual yield will grow over time if things go as planned.

Learn more about FDGFX at the Fidelity provider site.

12 of 15

Fidelity Investment Grade Bond Fund

income building concept
  • Assets under management: $ billion
  • SEC yield: %*
  • Expenses: %

Another way to generate a steady stream of income from your investment portfolio is to look beyond stocks to bonds. This asset class is much more stable than stocks, meaning investors don't shoulder as much risk of losing principal value. And this stability can come with reliable yields. The trade off, though, is that bond funds don't experience the same potential for growth as equity ones do. 

The Fidelity Investment Grade Bond Fund (FBNDX, $) focuses only on "investment grade" bond issues – that is, loans taken out by the most credit-worthy entities. Top issuers at present include the U.S. Treasury and government-backed mortgage entities like Fannie Mae, along with top-rated corporations like Goldman Sachs (GS). 

Seeing as the chances of Uncle Sam or big megabanks defaulting on their bond debt are incredibly slim, this is one of the Fidelity funds featured here that you can hang on with confidence for the very long term.

There are about 1, different bonds that make up the current portfolio, adding up to a yield of about %. That's not terribly large and only slightly bigger than the S&P at present, but keep in mind that capital preservation is as much the name of the game as income is – and FBNDX has a portfolio that's built to last.

*SEC yields reflect the interest earned after deducting fund expenses for the most recent day period and are a standard measure for bond and preferred-stock funds.

Learn more about FBNDX at the Fidelity provider site.

13 of 15

Fidelity Strategic Income Fund

building blocks with arrows pointing up
  • Assets under management: $ billion
  • SEC yield: %
  • Expenses: %

Of course, not all investors are willing to trade bigger income potential simply for the greater reliability that investment-grade bonds offer. That's where Fidelity Strategic Income Fund (FADMX, $) comes in, as it is a multisector bond fund that not only looks at the most reliable bonds, but also the next tier down of debt offerings – colloquially referred to as "junk bonds."

As with consumer finance, less credit-worthy borrowers have to pay a higher premium to the lenders in order to offset the risk of them not making their planned payments on time. In the bond market, the investors are the lenders – and the higher-risk borrowers are battered corporations that have seen better days, but still need ready capital to operate.

So, thanks to an eclectic mix of bulletproof bonds from the U.S. Treasury that yield less than 2% and those of small fry consumer finance firm Ally Financial (ALLY) that yield 8%, FADMX more than doubles the potential payday of the prior investment-grade bond fund with its current yield of 2%.

There is greater risk here, of course, but with an experienced team managing this fund, it could be a great fit for those looking at generating a bit more yield than the typical bond fund.

Learn more about FADMX at the Fidelity provider site.

14 of 15

Fidelity Balanced Fund

stacks of quarters balancing on top of a jenga game
  • Assets under management: $ billion
  • SEC yield: %
  • Expenses: %

If all these Fidelity funds sound interesting in some way but you're having trouble deciding, then why not just go with a one-stop offering via the Fidelity Balanced Fund (FBALX, $)? 

This "asset allocation" fund is not limited to just stocks or bonds, but instead targets a roughly 60% allocation in stocks and a 40% allocation in bonds during a typical market – and builds a holistic portfolio for you. Those stocks are not restricted by hard limits on geography or size, either.

As a great illustration of this, the FBALX portfolio currently holds long-term U.S. Treasury bonds in its top holdings alongside mega-cap insurer UnitedHealthGroup and mid-cap electronic component company Jabil (JBL). That's quite a wide swath of the market to cover!

Interestingly enough, FBALX is one of the more affordable active funds in Fidelity's repertoire – meaning you can get the expertise you're looking for and a hands-on approach to asset allocation without paying out the nose on fees.

Learn more about FBALX at the Fidelity provider site.

15 of 15

Fidelity Multi-Asset Income Fund

highway sign pointing to stocks and bonds
  • Assets under management: $ billion
  • SEC yield: %
  • Expenses: %

A slightly different approach to an asset allocation portfolio is the Fidelity Multi-Asset Income Fund (FMSDX, $) that prioritizes income potential over the long term. So while the prior Fidelity Balanced Fund yields less than 1% a year thanks to its focus on equities that don't pay dividends, FMSDX generates a whopping 6% yield thanks to a target of 40% to 70% of the portfolio in bonds.

Currently, FMSDX is at the lower end of that range as it is loaded up on equities in response to a rising interest rate environment. But even so, it's throwing off a yield that is about four times the S&P

Be warned, however, that this yield is generated from junk bonds – specifically, 24% of the FMSDX portfolio at present is in "non-investment grade" bonds. As discussed previously, this comes with risk, as distressed companies might pay more in interest, but also carry a higher chance of default. 

Still, if you are willing to take on exposure to less flashy companies like this in exchange for big income, this Fidelity fund could be worth a look.

Learn more about FMSDX at the Fidelity provider site.


Fidelity Contrafund: Beating the Market the Old-Fashioned Way

Fidelity Contrafund (NASDAQMUTFUND:FCNTX) has long been one of the legends of Wall Street. Back in the s, it was one of the funds that helped build Fidelity Investments' reputation as a stock-picking powerhouse. But does today's Contrafund live up to the legends?

In an age where more and more investors have moved to automated, indexed funds, Contrafund is a throwback. It's an old-school, actively managed mutual fund run by a single human manager with a simple mandate: Buy great stocks. 

Can that old-school approach still work in today's hyper-automated investment environment? It turns out that it can.

Stock market data on LED screen.

Image source: Getty Images.

It's not really contrarian; it's just a great stock-picker
When Fidelity first launched Contrafund way back in the s, it was aptly named: At the time, the fund's mission was to take a contrarian view, investing in out-of-favor stocks or sectors.

That has long since changed, and it hasn't been true since Will Danoff took over the fund in Danoff's approach isn't especially contrarian: He likes to buy well-managed, "best-of-breed" companies with growing earnings at good prices. 

That approach has worked out quite well, generating returns that have beaten both the S&P  and the Large Growth category average as tracked by Morningstar over the one-, five-, and year periods -- no mean feat for a $ billion fund. It's no surprise that Morningstar gives Contrafund five stars overall. 

Contrafund's huge size is the price of Danoff's stock-picking prowess. Its outsized performance under Danoff has made the fund a stalwart of many (k) plans and individual investors' portfolios. That in turn has made it one of Fidelity's, and the industry's, biggest actively managed funds for years.

What does Contrafund own?
The fund's official objective -- simply to seek capital appreciation -- gives Danoff lots of leeway to find and buy great companies without being too concerned about whether somebody else classifies the fund as "growth" or "value."

In practice, Contrafund's portfolio has typically had a strong large-cap growth bias. In part, that's a function of the fund's size. Danoff needs to stick mostly with big-name companies with big market caps, because holding a slice of even the greatest tiny company won't make much of an impact on the performance of a fund of this size.

Here are the fund's top 10 holdings as of the end of the first quarter:

  1. Berkshire Hathaway
  2. Apple
  3. Facebook
  4. Wells Fargo
  5. Biogen
  6. Google Class A
  7. Google Class C
  8. The Walt Disney Company
  9. Colgate-Palmolive
  10. UnitedHealth Group

See what I mean? Good (and big) companies with strong earnings growth, plain and simple. The fund's turnover rate is 45%, suggesting that Danoff tends to hold his best ideas for a while. We like that: It makes good investment sense and helps keep the fund's costs down.

Contrafund is fairly well diversified across sectors, but Danoff's stock-picking skills lead him to favor some over others. As you'd expect from a growth-minded manager, the sectors that dominate the fund are information technology and healthcare. The two sectors together account for about 34% of the S&P , Contrafund's benchmark index, but they make up nearly half (%) of the fund's portfolio.

Still, it's a solidly diversified fund. But if you're looking for regional diversification, be warned that there isn't much. Danoff mostly sticks close to home: 91% of the fund's holdings were U.S. companies as of March  

Good performance at a reasonable price
Fidelity has long made Contrafund easy for individual investors to own. The minimum initial investment is just $2,, there's no minimum on additional investments, and there are no loads or sales charges. 

The fund's expense ratio (its management fee plus other expenses) was just % over the last year, or $ per thousand dollars invested. That's more than you'll pay for most index funds, but it's significantly lower than the average for Morningstar's Large Growth category (% in ).

The upshot: One of the great mutual fund stalwarts is still a solid bet
There's a good argument to be made that most investors are better off avoiding actively managed mutual funds nowadays. Between high fees and iffy stock-picking, many underperform the indexes over and over, making nobody but their managers rich.

But even today, Fidelity Contrafund continues to shine. That's because the fund continues to offer the simple value proposition that the Fidelity empire was built on: Hire a great stock-picker at a fair price and watch your portfolio beat the market. It's still working.


Minimum fidelity investment contrafund

FCNTX: Overview of Fidelity Contrafund

The Fidelity Contrafund (FCNTX) is the largest actively managed mutual fund in the world, with more than $ billion in assets under management (AUM) as of March 25,  Contrafund is managed by Fidelity Investments, one of the largest mutual funds in the world. 

Key Takeaways

  • Fidelity's Contrafund is among the most widely held funds by (k) plans and other retirement plans.
  • The Contrafund makes its returns by picking growth stocks with a high probability of capital appreciation.
  • Because of the fund’s enormous size, it tends to focus on U.S. large-cap stocks with market values greater than $10 billion.
  • The fund requires a minimum investment of $2,

Naming and Investment Objective

When it was first launched in , the fund was named Contrafund for its original investment objective, which was to take a contrarian view by investing in out-of-favor stocks or sectors. In the s, Fidelity was catapulted into the top tier of investment management funds when legendary stock picker Peter Lynch drove the Magellan Fund to huge success. In the s and beyond, it was William Danoff’s turn to carry the torch as the fund manager for the Fidelity Contrafund.  

Since Danoff began managing the fund, its objective has changed to simply achieving capital appreciation by picking good growth stocks. The fund managers use bottom-up fundamental analysis to find companies they believe are poised for sustained, above-average earnings growth not reflected in the stock’s price.

Investment Manager

William Danoff joined Fidelity in as a securities analyst and portfolio manager. He graduated from Harvard University in and went on to earn a master of arts degree and an MBA from the University of Pennsylvania. He took over management of the Contrafund in when it was considered a contrarian fund.

Danoff gradually changed the fund’s mission into investing in fair or undervalued, well-managed, “best-of-breed” companies with good prospects for earnings growth. In the last 25 years, his stock-picking prowess has attracted more than $ billion in assets, making the Contrafund one of the most successful growth funds of all time.

Portfolio Holdings

The fund invests primarily in large-cap U.S. stocks, but it has a small number of foreign securities. The fund favors the technology sector with historically around a third of their assets allocated there, followed by communications, healthcare, and financials. As of March 25, , the fund's top five holdings are in Facebook Inc.,, Microsoft Corp, Berkshire Hathaway Inc., and Visa Inc. The top ten holdings in the fund account for almost 45% of their portfolio.

Investor Allocation

The Contrafund is considered an outstanding core holding for long-term, growth-oriented investment portfolios. Due to the fund's exposure to domestic large-cap growth stocks, it should not make up the majority of an investor's portfolio. The fund is around 92% invested in domestic equities versus around only 7% invested overseas. For a more diversified stock portfolio, the Contrafund should be complemented by an international stock fund due to its low foreign holdings.

Top 5 Performing Fidelity Index Funds in 2021

Large Cap Growth fund seekers should consider taking a look at Fidelity Contrafund (FCNTX). FCNTX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.


We classify FCNTX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.

History of Fund/Manager

Fidelity is responsible for FCNTX, and the company is based out of Boston, MA. The Fidelity Contrafund made its debut in May of and FCNTX has managed to accumulate roughly $ billion in assets, as of the most recently available information. The fund's current manager, Will Danoff, has been in charge of the fund since September of


Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of %, and is in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of %, which places it in the middle third during this time-frame.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, FCNTX's standard deviation comes in at %, compared to the category average of %. Over the past 5 years, the standard deviation of the fund is % compared to the category average of %. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of , so it is likely going to be as volatile as the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P Over the past 5 years, the fund has a positive alpha of This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.


Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.

Right now, % of this mutual fund's holdings are stocks, which have an average market capitalization of $ billion. The fund has the heaviest exposure to the following market sectors:

  1. Technology

  2. Finance

  3. Retail Trade

Turnover is 32%, which means, on average, the fund makes fewer trades than its comparable peers.


For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FCNTX is a no load fund. It has an expense ratio of % compared to the category average of %. FCNTX is actually cheaper than its peers when you consider factors like cost.

Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.

Bottom Line

Overall, Fidelity Contrafund ( FCNTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Fidelity Contrafund ( FCNTX ) looks like a good potential choice for investors right now.

Don't stop here for your research on Large Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out for more information about the world of funds, and feel free to compare FCNTX to its peers as well for additional information. If you want to check out our stock reports as well, make sure to go to to see all of the great tools we have to offer, including our time-tested Zacks Rank.

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