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Anyone here put money on a scheduled basis into the same Mutual Fund for over 20-30-40 years? What happened?
Understanding the "Performance" section of mutual fund rankings
Wanting to invest $5,000 in 5 different indexes - should I do it slowly or just dump it at once?
Mentions
SPLG/FTEC/FCNTX FCNTX is my exotics. I get some open AI and SpaceX exposure.
Bought some FCNTX and FBGRX. I’m long AMZN and AVGO for the past several years but the concentration in AVGO became too much so I sold some and bought those funds. I’m not a good enough picker to keep getting lucky, let the funds with a good track record do it for me.
The Fidelity Contrafund (FCNTX) is actively managed and slightly less correlated (.89 versus the S&P500) than the typical large cap ETF. I know mutual funds are out of style, but this one of the last worth holding. The management team is excellent, it frequently outperforms the S&P, and the fees are reasonable.
You’re 23, now is the time to take risks. If it blows up you have time to make it back, and if it does well, all the better. You have it exactly backwards. So yes you are over complicating it. By risks, I mean more stable investments into more growth stocks. FCNTX is what you’re looking for.
You absolutely don’t need a financial advisor Set a recurring buy for SPY, VTI, or FCNTX and ignore it til retirement
FCNTX does most of this and generally outperforms VOO/VTI/SPY etc, only marginally more drawdown as well, compared to bigger drawdowns with leverage
FBGRX is a great buy and hold, as is FCNTX
QQQ, FBGRX, IWY, VUG, FDSVX, VOOG, FCNTX, FXAIX, have 10-year total returns of 523% to 299%.
The questions wasn't whether or not the government was onto him in 2008 -- that doesn't change what he was claiming. His firm was claiming returns of ~6% at the end of September and he only called it quits with like two weeks left in December... He took in over $250m in investments December. I think it's a fair to say he was claiming a positive return for til almost the last day of 2008 when none of the other were. Anyway, that's just an example of why his numbers were unrealistic. Millennium, FCNTX, and OAKMX are also only just approaching madoffs numbers after experiencing the mostly bull market of the last decade plus. At the time Madoff stopped trading with his 'returns', the others had average annual return closer to 10-10.5% so Madoff was actually beating them by 40%+
14% since inception. Nygren at OAKMX returns 12.8% Danoff at FCNTX returns 13-14% Both are mutual funds accessible to anyone and have outperformed Millennium the past 3 years.
1. Vanguard • AUM: ~$8+ trillion • Known for: Low-cost index and actively managed funds, investor-owned structure. • Flagship Funds: • Vanguard Total Stock Market Index (VTSAX) • Vanguard 500 Index Fund (VFIAX) • Vanguard Total Bond Market Index (VBTLX) • All funds are no-load 2. Fidelity Investments • AUM: ~$4 trillion in mutual funds • Known for: Both active and passive funds, strong research platform. • Flagship Funds: • Fidelity 500 Index Fund (FXAIX) • Fidelity Contrafund (FCNTX) • Fidelity ZERO Total Market Index (FZROX – 0% expense ratio) • Most are no-load 3. T. Rowe Price • AUM: ~$1.4 trillion • Known for: Strong actively managed funds, long-term track records. • Flagship Funds: • T. Rowe Price Blue Chip Growth (TRBCX) • T. Rowe Price Growth Stock (PRGFX) • All funds are no-load I have been in TRowePrice since my early 20s and I am now nearly 60. Market timing is for suckers. And every time I think I can pick stocks, I relearn I am an idiot. Regular monthly money to fill your Roth account is the secret. Extra $ into funds for your savings. (Don’t forget to get your emergency funds set up) — I hope one day 55 year old remembers these days when you committed to your savings and thanks you.
It depends on the active managed fund. I use FCNTX in one account and it does outperform the index and pays a decent sized dividend and capital gains distribution. I like index funds in a brokerage like FXAIX and VOO
FCNTX FAGAX EPGAX Those three have them that I know of. They are managed by a team that crosses over and shares a lot of funds and information.
Something to consider with FCNTX is that it has non-trivial capital gains distributions. More of a tax bill at the end of the year when in taxable accounts.
I wouldnt be so caught up in expense ratios. Theres a few active managed funds that outperform the index even after the fees such as FCNTX for example.
FCNTX has performed better than FXAIX short term and even long term even after including all the fees. I would say FCNTX is a better fund. The fee is more of a psychological thing.
Take with salt as people a lot smarter than me will tell you you're fine with just S&P. My opinion (and what I do) is 20-25% FZILX (zero expense ratio international large cap, some good Japanese, European, and British exposure), and 30% FCNTX mutual fund. Normally I think S&P index is superior to mutual funds, but I think the market is particularly inefficient right now due to all the political risk which is allowing mutual funds to (possibly temporarily) outperform. Given the current political climate, I like at least half my money either overseas or in a fund that has an actual hand on the steering wheel.
I am already setting aside $500 a month into the S&P 500 (FXAIX). I would like to contribute an extra $100+ a week and maybe an extra few hundred dollars into another fund. I am having a hard time choosing between FRGIX and FCNTX. I just want something that will build capital appreciation with my weekly commitments to have something nice to look forward to 30 years from now. What draws me to FGRIX is the year end distributions. FCNTX just seems like growth with a chance of a distribution. The other one I was looking into was FEQIX the Equity Income fund. Just wanted to hear other opinions on what to select.
I have Fidelity as my broker. I am already setting aside $500 a month into the S&P 500. I would like to contribute an extra $100 a week into another fund. I am having a hard time choosing between FRGIX and FCNTX. I just want something that will build capital appreciation with my weekly commitments to have something nice to look forward to 30 years from now. This is outside my 401k contributions.
I am 32 years old. Due to financial regulations, I was only allowed to have an archaic Merrill Lynch account. Thankfully, as of yesterday, I am able to break free and move to Fidelity. I felt very constrained at ML. Now that I am able to start fresh and actually invest a lump sum of money in fractional shares of ETFs and mutual funds, I am trying to figure out the right diversification. I plan to invest about $1,000 a month into the following: 35% into FTEC 35% into SPLG 25% into FCNTX Is that a good mix? (I am aware some of these funds will have overlap in stocks and sectors.) I also plan to contribute an extra $50–$100 a week into FCNTX. I am really looking at that one fund as something I can grow, collect residual capital gains from, and not have to think about too much. Another fund I was considering is FOCPX in lieu of FCNTX. I am also open to seeing if I am overlooking any funds in Mid Cap Growth or Small Cap Growth or a Blend. Thanks!!
Ive been splitting my 401k contributions between FXAIX and FCNTX, the latter has been doing really well.
Hi [r/investing](https://www.reddit.com/r/investing/) I am 33 years old and would like to start investing on my own but I am pretty lost and looking for some advice how how to do this. Some advice i am looking for is some 'general rule of thumbs' where i can take X amount each month from my paychecks and invest them but not be extremely involved/obsessive about it. AKA i don't want to wake up every day and 'make moves' which i think is a pretty normal thing to expect? Here is some info about me. I am looking to take about 10k from my HYSA (3.6% rate atm) account and invest it. I currently have a Charles Schwab account and have done a tad bit. \-I max out my 401k and get company match \-I have a HSA account but not max it (i put 1,200 in a year work gives $500 - should i take a portion of my 10k and max that first?) \-The only debt i have is a mortgage (2.99% interest rate) so it seems better to at minimum leave money in my HYSA rather than pay off mortgage. \-I have about $1,000/mo leftover to invest and would like to start doing the right thing now. \-This ideally would be money for retirement so i suppose some safer and some more aggressive? I think what I am looking for are some safe stocks/index funds to invest in. Also how to go about knowing when to buy more? A friend of mine says a 5% drop from a 30 day high? Right now I have a few shares of **JEPQ and FCNTX** I was looking into **VGT** and **VOO** as well? If any more info is needed please let me know, and please don't solicit via chat with paid services. Thanks!
That's not very nice. Perhaps you might do better to respond with reasoned arguments. I took the past 10 years. Pretty standard. Not really cherrypicking. How can FCNTX "beat the market in every year since its inception over 30 years ago" yet lose to the market from 2015 to 2025? Shouldn't it have beaten the market in each of 2015, 2016, .... 2024? What am I missing?
Here's a [Yahoo plot comparing FCNTX (blue) vs SPY (pink).](https://i.imgur.com/yFa52nj.png) From 2015 to 2018/10 they ran neck and neck (but SPY paid more dividend). Then let's go to 2023/01 - FCNTX had just returned to its 2017/09 value, undoing over four years of gains. SPY also took a dip, however, but it reverted only to 2020/11, undoing 2 years of gains. From 2015 to today, SPY went from 211 to 579, or +174%. From 2015 to today, FCNTX went from 10.18 to 21.44, or +110%. I'm just not seeing that FCNTX beat the market. What am I missing?
FCNTX has reasonably high turnover. Those are its current holdings, yes. It has beat the market in every year since its inception over 30 years ago. And it has been run by the same guy (solo until last month) that entire time.
Beware of survivorship bias (some of those that did poorly were shut down). And beware of random luck - if I had 1000 monkeys flinging darts at the WSJ, 50% would beat the market, and 50% would trail. The top 10% of monkeys would look pretty good. Your FCNTX is heavily into NVDA, META, APPL, so it rode the tech wave. Now it's at a high peak. But if you were looking at it in 2023, you'd be sobbing (went from 20.7 to 12.2, losing 5 years of gains).
The actual stat is 90% of fund managers. There are plenty that beat the market consistently. Just take a look at FCNTX.
FCNTX (Fidelity Contrafund)
I’m mostly VOO and SPY. I also own XLK (tech). I’d been out of international for a while but have been buying VXUS recently. I also have some FCNTX. It’s a mutual fund but typically performs well.
VOO if only between those two. Or FCNTX. Out performs the market
For 2025 50% money market with occasional options trades 20% FXAIX 15% FCNTX 14% AKREX 1% FBGRX
Yes - the other $5M is in a combination of callable bonds (ranging from 5.75-6.45%), SGOV, FCNTX, VOOG, and individual stocks (only about $400K in stocks).
If you all are so lazy enough to just keep all your money in FCNTX or the equivalent then you deserve your misery. Try doing some research. There is money to be made. Try mining stocks. CLN has rocketed. Just one example.
~2002 I inherited 20k. I took my check to a Fidelity office and they split the money evenly between 5 funds in a brokerage account. Contrafund and Diversified International are the ones I remember. One fund was liquidated and I rolled the cash into FCNTX and FDIVX. So I’m down to four funds. After close to a decade (shame on me) I noticed that two sucked so I sold them and bought more FCNTX and FDIVX. International was on a tear back then. Probably 10 years ago I learned about ETF’s. I forget what happened next but basically international had cooled way off so I liquidated FDIVX and bought ETF’s. I also liquidated the brokerage in 2018 to fund my wedding and house down payment. I had 62k when I started selling. Kind of crazy because if I’d been paying attention I would have done even better. My retirement accounts are a different story but my brokerage best tells my story. I still own some FCNTX but I’m predominantly equity ETF’s. No bonds. I’ve never owned a single stock.
My first invesment had to be a mutual fund. Most likely FCNTX. My first individual stock was probably FNMA during the financial crisis. I thought it was too big to fail so I bought near rock bottom. I think I made like 50% on it and flipped it to C and BAC with similar justifications. I remember C because I bought it at its all time low. The only reason I sold was to cash out and use the money to buy a home. I didn’t time the market, I just happened to be incredibly lucky to be establishing myself in my career at the same time the market was in a recession.
30 years investing, and just left a 30-year tech career to my portfolio has been tech heavy growth stocks forever as well as index funds and FCNTX for the entirety. I've been reducing my positions in growth stocks, building up my positions in dividend-yielding more value-oriented stocks since November. My cash position has gone from about 11% then to 22% in past 6 months, and will maintain that until I see different signs. I've sold some of my short positions on a handful of growth stocks to average down a bit and have also been starting positions in European ETFs.
Thank you!!! I am using primarily mutual funds since they are actively managed. I assume they will outperform other passively managed investment vehicles. My Roth consists of VFIAX, VIMAX, FCPGX, and SCHD, small, mid, and large caps with SCHD because I like the idea of receiving money without selling my stocks. In my traditional, I have VTIAX, FSELX, and FCNTX. My 4 months of research got me here. This is my plan. Please don't hesitate to give criticism and your opinion on allocations, percentages, or if I should switch to different stocks altogether. Like I said before, I am starting and don't have much experience, so any advice is welcome.
Hello, everyone. This is my first post ever, and I need some help. I am 25 and started investing in December of last year (When the market was at its all-time high). I am maxing my Roth and traditional IRAs and have 4k in each account. I want some insight from more experienced investors on what I should do. I own some investments that track the SP500, which I bought at its highest. Should I buy more of the SP500 and take advantage of the dip, or should I stick to my plan with smaller caps with a higher upside since that is retirement money I won't touch in the next 35 years? I am employed, making 8k a month. My current holdings are VFIAX, SPY, and FSELX (I plan on buying VIMAX, FCPGX, SCHD, VTIAX, FCNTX, and FBALX.) Open to any feedback
[https://portfolioslab.com/tools/stock-comparison/FCNTX/VOO](https://portfolioslab.com/tools/stock-comparison/FCNTX/VOO) Fidelity Contrafund Fund (FCNTX) has a higher volatility of **4.98%** compared to Vanguard S&P 500 ETF (VOO) at **4.01%**. This indicates that FCNTX's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Thank you very much for your feedback, and for the reminder on comparison. My mom used to say that all the time and I needed to read it again! I will move the FCNTX for certain. No rush to answer and Dumb question incoming but... Does this mean I need to avoid adding (ideally) **Dividend Funds, Income funds, and Mutual funds or ETFs with annual distributions to an individual account?**
> Please, speak to me like I'm 10 - does anyone have suggestions on how I can navigate having much less than all my friends in their account, but still be able to eventually retire at some point in my life? Comparison is the thief of joy; applies to many things in life. Best thing you can do is embrace and accept that you're running your own race here. I think it's good to work backwards from a goal. In this case, retirement! When you'll retire, what your expenses will be, how much you'll need to have saved up by then. That's how you work on mapping out how to get from Point A (today) to Point B (retirement). Assuming you invest with Fidelity, they have some free retirement planning tools you can use. Worth poking around at. Obviously the more you can save the better! Budgeting helps. I have to run to a meeting here but one thing I'll point out with regards to your specific investments is that something like FCNTX is best suited for a 401k or IRA, since it pays out distributions every year that you will need to pay taxes on if it's in an individual brokerage account.
Of course! Basically, ever since I was you age I automatically deferred 10% of my total income into a 401k and or IRA. I put the funds in mutual funds such as FCNTX which has out performed the S&P index funds. I'd say 65% to 65% of assets are large cap.Also 10% into small cap, 15% into mid cap and 10% international. Just trust the process you are the perfect age to start.
That's a normal approach! OP take a look at FCNTX. It has a history of out performing the S&P index
Check out FCNTX it's a managed fidelity fund that beats the index
Hello all! (30, Male, Married no kids, USA) Here is my current breakdown. I realize I’m very heavy in the S&P 500 but I essentially use that as a higher growth savings account to buy a rental property one day. I am trying to be in large, mid and small cap funds to be diversified well. I don’t really think international funds tend to do well, but open to hearing about a good one. What would you change either percentage wise or new fund completely? Thanks in advance! Brokerage VOO - 48% FCNTX - 21.8% VONG - 8.7% VIMAX - 8.6% VSMAX - 8.5% FSELX - 4.5% 401k VIMAX - 25% VSMAX - 25% FAVRX - 25% RGAGX - 25%
I’ve been investing for nearly 25 years. Whenever I decide to open a new position I either: 1. Sell PUTs until I get assigned at a price I like 2. DCA in All my accounts have an automatic weekly DCA into SPY and FCNTX (Fidelity mutual fund). And, OP, the most important thing here is patience. Don’t panic sell. You could do covered calls and capture some premium if you think you are in at too high of a strike.
Those returns in your screenshot are completely wrong. It ignores any capital gains distributions from the fund which in an active fund like FCNTX can be quite significant.
Total US market and S&P500 have like 0.99 correlation and nearly identical returns, with S&P500 slightly outperforming over the past 10+ years. https://portfolioslab.com/tools/stock-comparison/FCNTX/VOO If you wanted to compare to a low cost S&P500 fund like VOO, they have nearly identical 6 month and 1 year returns, but VOO has done greatly better over the past 5 years, and 10 years.
total market index is not an appropriate benchmark for FCNTX. the S&P 500 is the benchmark for Contrafund, and Contrafund has beaten its benchmark or category over 1, 3, 5, 10 and 15 year periods. https://www.morningstar.com/funds/xnas/fcntx/performance
FCNTX vs VTI shows VTI has greatly outperformed over the past 10 years. https://imgur.com/q7uClTf FNCTX has barely nosed ahead in the past year or so: https://imgur.com/ZvWG3Rf I wouldn't make allocations to some more expensive actively managed funds just because they barely outpaced the broad market for a short time. Plenty of funds will do this. They don't do it persistently. The top quartile of actively managed funds in a given 5 year period are often seen in the bottom quartiles the following 5 year period. In investing, there are only a few things you can control. One of them is expense. 0.3% is still relatively low, compared to mutual funds with expenses of 0.5-1.0%. But it's still 100x more than 0.003 (are you sure it's not 0.03?). No, I wouldn't recommend allocating to a more expensive actively managed fund with a higher expense ratio because of a short term recency bias.
I am hoping fund managers will move around the percentage based on market. FCNTX also has high expense ratio but the returns has been good. I also have risky bets in Crypto, so want something stable good return like FCNTX or better.
Can you anyone explain to me why FCNTX was down 3.26% yesterday given the performance of the rest of the market. I know there is a dividend today but I’m unsure of how that plays into the performance yesterday. Thanks!
Two things I know, correction is swift and painful to go through. One has to be disciplined unless you have invested with money you cannot afford to loose. The second lesson is the more money you have, the more loss you can tolerate, thus investing is easier even if you are old. My advice for all my sons and young associates, start early, be disciplined in saving some money for investments, don’t try to hit the home runs! SPY, QQQ and maybe an ETF with international companies. I put my kids through med school and dental school by investing in FCNTX since they were born and they came out entirely debt free. Trust me I had paid my share of mistakes, but a little knowledge of the fundamentals, technical analysis and some luck goes a long way! Like $5 million gain in Nvidia the last 12 months for the portfolio. As for the age related stock/bond ratio, it’s for guidance and works generally for someone who wants to pay a financial planner. I have no problem with that!
FNILX is zero fee. FCNTX is probably the most popular Fidelity fund.
FCNTX is actively managed not passively
You are young. Sure, why not. How active do you plan to be? If passive... i recommend FNILX or FCNTX.
Contrarian funds. One example would be FCNTX. It performs better than conventional funds but does not always beat growth stock index. Time to shine is when market had a snag. The risk is about the same as VOO.
Invest in a highly rated ETF or index fund. QQQ or FCNTX Do not put money in a single stock if you can’t afford to lose it
Looking for some advice. I am 44 years old and I have been casually saving over the past few years and had my money in a high-interest savings account that was getting 5.25% I saved up about 16k so far and I was hoping to make more than 50 dollars a month interest. I have moved the money out of the high-yield account and transferred it into my fidelity account and bought into a mutual fund FCNTX. My ultimate goal is to double it over the next few years and use that money to buy a car. Should I leave it in the mutual fund or put it into an ETF? 2nd question, I have a 401k that I had with an old employer and have 150k total in it which is currently invested in 50% Fidelity 500 index (FXAIX) and 50% in Jp Morgan Large Cap Growth (JLGMX). Should I leave it where I have it? YTD performance is 24% and has done really well over the past few years I believe last year it was 30+%. Again I have read a lot of people saying to invest in ETF's. Any advice is welcomed as I don't have a lot of knowledge with this stuff.
FCNTX has had strong returns too. Diversify. Buy multiple high performing index and mutual funds. Not one volatile or new fad stock.
Question here, the near future US economy is stressing me out greatly ! Do I move individual stocks into funds, or just hold? Trying to decide. 55f with a rollover Ira, have a work 401k as well. When I rolled the ira over 10+ years ago, I decided to just buy stocks I like and use along with a couple funds just to see what happens. So, my IRA consists of DIS, GOOG, AMZN, COST, AAPL, MSFT, SCHD and FCNTX. It has done really well over all (aside from DIS) but I am just feeling stressed the market is going to crash in the near term, and I'll lose half the gains I need just when I am thinking about retirement. My DS22 says just hold, they are companies not going anywhere. I'm feeling I may want to lock in the gains and move to ETFs. Anyone else feeling this way? Opinions are welcome! I have not felt this worried before, but I am closer to retirement now than 10 year ago. Thanks!
There’s 4 types of funds: * Passive low fee index mutual funds like VTSAX * Passive low fee index exchange traded funds like VTI * Active high fee mutual funds like FCNTX * Active high fee exchange traded funds like ARKK VTSAX and VTI are the same. If you buy VTSAX at Vanguard, you can convert to VTI. Mutual funds are obsolete. Everyone uses ETFs now because they’re more tax efficient.
Fidelity Investment Portfolio Rate My Fidelity Investments 31, married, no kids: high risk tolerance/aggressive portfolio Just getting into mutual fund investing; looking to see if the funds I picked are sound choices. All are morning star 4 or 5 star rated. Going to ride the wave for 20-30 years FBGRX 10% FBNDX. 8% FCNTX. 20% FGRTX. 15% FIVFX. 12% FMILX. 10% FSELX. 15% FSPGX. 10%
Sounds good! Fidelity has some nice zero-fee index mutual funds, those are a darn good bet - FZROX, FNILX, etc. Fidelity also has some good actively managed funds, like FBALX, FCNTX, and FAGIX - but nowadays the trend seems to be to go for the free ones!
Yeah, I was just trying to be a cheapskate haha. The schwab account is called a Personal Choice Retirement Account. Supposedly has access to most of the market, but I don't know that to be fact. All of my statements list FCNTX as the ticker so maybe it's what u/Mrknowitall666 is referring to.
FCNKX (institutional, such as retirement plans managed by Fidelity directly) vs FCNTX (retail). Schwab is the same idea, just a competitor. Retirement plans don't typically offer the open market. You are in a benefit plan account, not an investment account. Your employer might have a lot of fees, if they pay Nationwide to give them something Fidelity is also taking administrative fees to manage.
Unless it has turn around opportunity. It is like contracting cancer getting new vitamin does not solve it. To make it turn around making money is a momumental task. The only etf I can memeber was FCNTX. But when I look at its portfolio most are just profitable tech companies. GME, Mens warehouse some of Burry's bets did not pay off.
Im a newbie investor into my Roth IRA at 31 years old. Looking for some review and guidance. Aiming to max out my 7k contribution by end of year. Thank you for your advice. FCNTX - 22% FSKAX - 22% FXAIX - 33% FZROX - 4% QQQM - 6% SCHD - 4.5% WRB - 8.5% Thank you for your advice.
FCNTX I think is the other fund
Big fan of FCNTX. I’d split the top two.
Seeking advice for a 21 yr old Hey Everyone!! I’m seeking any advice you could give a 21 yr old from the United States that wants to take more risks in the stock market. I come from a family that has little to no faith in the stock market and are very fearful of investing. I currently live at home and I would like to use some of that money to pay off my student debt in the next 5 years. I am currently employed and work full time. My current position are: CASH MANAGEMENT ACCOUNT FCNTX: 20 shares FZROZ: 85 shares NVDA: 3 shares VOO: 1 share VT: 2 shares VUG: 1.3 shares XLV: 3.8 shares ROTH IRA FCNTX: 36 shares Any advice is appreciated, thank you.
>27 companies with $29b in value TIL Fidelity Contrafund FCNTX, which is managed by one man (Will Danoff) has almost 5x more assets under management than the entire Icelandic economy.
Hey - I currently have about $15k of vested HD stock. I'm trying to understand if it makes more sense to keep that HD stock or if it makes sense to pull it out and load it into a fund like VOO / FCNTX / FXAIX? Outside of that - portfolio is limited, about $5k spread across funds and short-term t-bonds.
Hi, 19 year old who recently opened a Fidelity brokerage and ROTH IRA with $500 in the former and $2000 in the latter. I was wondering if my portfolio is considered too complicated or risky, or if there is a better approach. Currently in my ROTH, I have split my money 80% into FXAIX, 10% into FSELX, and 10% into FBGRX. To my understanding, the most common advice for new investors is to put all your money into FXAIX and call it a day. However, I'm ok with taking a more aggressive approach and the current 10 year return percentages of FSELX and FBGRX seemed like a no brainer to choose them. Of course, I only invested 10% into each of them due to the much higher expense ratios and risk. Would it be ok to invest even more into these as their high returns outweigh the expense ratios, or am I wrong to think this? For my brokerage, I have it set up 50% FSKAX and 40% FSPGX for their low expense ratios and great 1 year returns, but also placed 10% to FCNTX for its even higher 1 year return. (Like FSELX, I only kept it at 10% as I noticed the higher expense ratio). I've also realized that my portfolio is essentially completely invested into domestic tech. I was searching for funds within other sectors like utilities and health care but their funds seemed to have higher expense ratios with lower returns. International funds also seemed to have very low returns compared to the ones I had already selected. Am I going about this the right way? I'm still very new to this. Thank you for your help.
Thank you all for the thoughtful replies. Many of you raised very good points and helped to clear up my understanding of exactly how expense ratios fit into the picture. Since many of you want to know, the fund I was referring to in the OP is FCNTX. I didn't want to mention it because I wanted the discussion to be about the concept in general rather than devolving into an analysis of a particular fund. I am well aware that past performance does not guarantee future performance, but this one has done well for me over the 10+ years I've been in it.
FOPCX has done significantly worse than the whole market though, since inception? QQQ isn't a fund in that sense and isn't a good basis for comparison. Its over-performance is due to (a) recent domination by tech and (b) tech's historical concentration on the NASDAQ. If you want to bet that the tech sector will continue to over-perform, that's a valid (and very common) bet, but it's not relevant to the current discussion about whether active management can provide alpha. FCNTX I'll give you, though its over performance has largely come from 1-2 periods, with long stretches of under-performance in-between. I don't know if that's really all that convincing, but sure, it's an interesting datapoint.
Mine 😉 Also, imo.. FCNTX FOPCX Heck even QQQ.. And that is, just looking through bigger names
50% FCNTX 30% ETH 20% BTC…save FIAT for buying the dips
Just so you know, during my initial 15 year period, my investments were all growth focused/aggresive with funds in my 401K (mutual fund equivalents of VOO, SPLG, etc.) The portfolio I shared still has growth elements but is tilted more towards dividends. At your age, you should focus more on growth than just dividends. QQQ/M, VOO, SPLG, FCNTX, MGK, VONG etc. as examples. When you are 5-7 yrs from retirement, start moving towards dividend and income. Hope this helps. Good Luck! And dont be scared by market downturns. They happen and those are the best times to buy good stocks/funds/ETFs. So always keep some cash around in HYSA or CDs etc. that you can use in those times.
FCNTX has higher expens rates outside of employer plans. other than that, no difference.. 0.4% difference. i reached out to fidelity mutual fund senior support to confirm the knowledge.. i know. im ano.
I used to hold contra almost exclusively. Now 10% bonds (FXNAX), 30% contra (FCNTX) and 60% total market (FSKAX)
> Any reason to NOT buy FCNTX outside of my 401k? No.
I mean, I hope it works out like this, but in reality having 50% of your fund in MSFT, Nvidia, Apple ... ehh. They might continue to dominate, but if they don't, you are going to get fucked. People hate on Active Funds endlessly here and most are indeed garbage, but there are a few good ones, and I would trust FBGRX and FDGRX to continue to outperform QQQ and other similar passive funds on a risk adjusted basis, and have a better chance of avoiding a calamity that could really hurt a passive fund like QQQ. They actually earn their expense ratio, and if you can get a subsidized expense ratio on them in an employer 401k ... 110%, get them. Even FCNTX ... really good fund and superior to an S&P500 index fund. There are a lot of Fidelity Active Funds that are actually really quite good and have outperformed their benchmarks for several decades, and you can look at that performance in any number of ways ... Fidelity Funds tend to be outperformers. If you want your 15-20% CAGR over the next 10 years, your best bet imo is putting your money in one of those 3 Fidelity Funds I mentioned that are ran by guys who actually really know what they are doing and don't rip you off. You might not get there, but it is your best shot as a common person.
Put your money in FCNTX. Long, long history of outperformance of the S&P 500, fairly low expense ratio. Lot of active funds are shit, but ContraFund is a gem and one of the exceptions.
FCNTX has a long history of performance. Over the past 20 years, FCNTX has a CAGR \~2% higher than the S&P 500. Over the past 10 years, FCNTX has a CAGR \~1.5% higher than the S&P 500. Over the past 5 years, FCNTX has a CAGR \~2.5% higher than the S&P 500. Many funds underperform the S&P, doesn't mean all of them do.
Stay away from FCNTX. At 0.4%, it has 20 times the expense ratio of FXAIX. Actively managed funds try to beat the market but very few do because of the hurdle posed by those compounding expense ratios each year. Imagine investing in something that returns 7% compounded annually vs something compounding at 6.6% after the expense ratio is taken out each year. A very lucky fund manager would hit the jackpot if on overage they can beat the market by 0.1% each year. Nobody but the top 1% of the luckiest managers (or Warren Buffett) can beat it by 0.4% each year to cover the fees. Ask yourself the chances this fund manager is in the top 1%?
FCNTX carries much higher risk, but has potentially higher returns. FXAIX carries average risk but has lower returns. Go for FXAIX, this will give you returns roughly equivalent to how the overall market performs.
This is a perfectly okay option. Maybe move to 2065 or whatever latest option is. Or split into US/ex equities only. FCNTX is very tax inefficient so if you bought that in brokerage I’d look elsewhere. Ideally broad equity ETFs which are most tax efficient.
>My 401k sucks and it only has a return of 5% after 12 years What are you invested in? FXAIX and FCNTX are different mutual funds. FXAIX is an fund that tracks the S&P500, and FCNTX is an actively managed fund that follows a different objective. [https://www.reddit.com/r/personalfinance/wiki/index#wiki\_investing](https://www.reddit.com/r/personalfinance/wiki/index#wiki_investing) [https://www.reddit.com/r/personalfinance/wiki/commontopics](https://www.reddit.com/r/personalfinance/wiki/commontopics)
The top holdings in FCNTX seemed to all be sp500 stocks.
FXAIX: Seeks to provide investment results that correspond to the total return (i.e., the combination of capital changes and income) performance of common stocks publicly traded in the United States. [https://fundresearch.fidelity.com/mutual-funds/summary/315911750](https://fundresearch.fidelity.com/mutual-funds/summary/315911750) FCNTX: Investing in securities of companies whose value FMR believes is not fully recognized by the public. Investing in either 'growth' stocks or 'value' stocks or both. Normally investing primarily in common stocks. [https://fundresearch.fidelity.com/mutual-funds/summary/316071109](https://fundresearch.fidelity.com/mutual-funds/summary/316071109)
Will Danoff, manager of the Fidelity Contrafund > During his 33-year manager tenure, the Fidelity® Contrafund® (FCNTX) has averaged an incredible 13.28% annualized average return, more than 2% greater than the annual returns from the benchmark S&P 500 Index.* https://www.fidelity.com/mutual-funds/investing-ideas/will-danoff
Hey just guys, I am setting up an investment account for my son for when he is 18, and contributing to it through gifts he receives as baby/young child, and basically anytime I am able to spare some money, I was planning to open a brokerage account through fidelity (I already have my own brokerage and IRAs through them) and I typically use FXAIX, FBGRX and FCNTX when making long term investments for my own interests. I was just wondering if anyone had any better ideas, I have 18 years to grow this account so I’m okay being aggressive in the early goings. Thanks in advance advance
Gonna transfer TMFC to FCNTX...
Alternate suggestion: buy a fund that is wayyy overweight in the companies you mentioned. If you use Fidelity, FCNTX and FTRNX come to mind. These funds have the advantage of being actively managed to boot out the losers and replace them with winners over time. Plus they’re more diversified. But you’ll still get the heavy tech exposure that you seem to be looking for.