FNCMX
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My Roth IRA performance is lagging over the years and needs a tune up - your opinions and ideas; a discussion
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It looks good, this is similar to what I do except the FNCMX. Adding FXNAX isnt a bad idea for psychological reasons. In terms of Fidelity funds, FSELX is the best.
There's still a lot of overlap here. FXAIX, FSKAX and FNCMX all have the same top mega cap companies taking the majority of the weight. 90% of FXAIX is in FSKAX as well. You're basically investing in the top mega caps 3 times. A better way to diversify would be to do: 50% FXAIX 10% Mid cap etf 10% small cap etf 30% FZILX For the mid and small cap, you can find one that seems good to you. AVUV is a good small cap etf that a lot of people recommend. But you have fidelity mid and small cap funds for very low exp ratio. This way, you have no overlaps and have exposure to mostly everything. This is a simple "set and forget" portfolio for roth ira. Hope this helps.
FNCMX. NASDAQ outperforms S&P in nearly every situation but nobody here wants to admit it
I agree Fidelity of Schwab are better options and stick with Indexed ETFs, not individual stocks. Here’s a few of those that make up most of my Fidelity portfolio: IVV, IWY, FNCMX. It’s normal for them to ask for a social security number. As stated above, it’s needed for KYC (Know-Your-Customer which basically means the investment firm knows who you are). And a social security number is needed for Tax forms, since you are going to have to report your wins/losses to the IRS when you sell anything. So that’s another fun thing to look forward to. Best of luck getting started!
The proposed action of selling all other mutual funds ($FNCMX$, $FAWTX$, $VTTSX$, $SWYNX$) and consolidating into $SWPPX$ (Schwab S&P 500 Index Fund) within your Roth IRA is overwhelmingly a positive move, as the primary pros are simplicity and cost savings, and the main con taxable capital gains is completely eliminated since all selling and repurchasing occurs inside a tax-advantaged retirement account. You are correct that there is significant overlap, particularly with the Nasdaq-focused $FNCMX$, and consolidating removes the drag of higher expense ratios (like $FNCMX$'s $0.29\\%$ and the Target Date funds' $0.08\\%$ vs. $SWPPX$'s very low $0.02\\%$), leaving you with a clean, low-cost, US-stock-only portfolio that aligns with your current focus. While you will lose the automatic bond and international stock exposure provided by the target date funds ($VTTSX$/$SWYNX$), which could increase overall volatility, this is a conscious strategic trade-off for simplicity and lower operating expenses that many investors are comfortable with, and it fully capitalizes on the Roth IRA's ability to transact tax-free.
There is a ton of overlap in the funds. I feel as long as you just stay the course you are fine. Possibly add in FSELX and FNCMX from the FBGRX.
Buy an ETF/Mutual Fund that is heavy on Nvidia but has other stocks in it to pad out the risk. I have been in FNCMX for 15 years and the returns have been great
I wouldn't buy individual stocks because it is a lot more risky. If you want to have an event more AI tilt than VOO/VTI already has, then I would just add QQQM or FNCMX.
You’re clearly trolling because there’s no way you can tell me FNCMX and Amat are not good picks or conveniently not see that everything I chose on my own were good choices.
Well my Roth is the account I was using for the past 3 years. I selected the holdings for that and chose FNCMX and PayPal and YTD 25.24 But my FNCMX is up 87.94% since I started 3 years ago and PayPal is up 14.96% My actual self managed individual account is down 29% because I made the mistake of going all in on BNGO and losing 32k. I am never ever touching a penny stock or a stock that hasn’t been around for decades ever again. It was a very costly mistake that I’m very grateful for because I would’ve died if I messed up so royally with my largest investement. I left the account alone for a few years and last month put 18k in to test the waters out again. For the month it’s up 5.78% compared to the SP 500’s 3.06%
Using FNCMX from inception in 2003 vs. SPY: \+1,286.58% vs. +851.90% including reinvested dividends. That's 22 years.
And I understand that. Which is why I’m not moving my majority of my investment into the FNCMX
Well what else would I compare it to? If I’m going to compare it to the year, my managed fund still outperformed the VOO and SP 500 and the FNCMX def outperformed all of them by a wide margin
FNCMX tracks the all the companies listed on the Nasdaq at market cap weight. It actually has about 5% in stocks located outside the US. That being said, the top 10 stocks represent 58% of the fund, while the bottom 2,756 stocks represent the bottom 42%. At the moment, this is heavily tilted towards tech, because tech has done well recently, there is no guarantee that it will continue to be tech heavy in the future. If your investment philosophy is to be heavily invested in tech stocks, you should probably invest in a fund that’s “goal” is to be tech heavy (this is not the goal of the Nasdaq). If your investment philosophy is to have a broadly diversified portfolio of stocks, this also does a pretty crappy job at that, as over half of you holding are just 10 stocks. In the 90s, everyone thought Cisco would go up in a straight line forever… it still has not recovered. If your goal is to chase returns (this has a high chance of not doing well) then why not just buy the ETF that has done the best the last 5 years… the Nasdaq is not even close. I would do some reflection and ask yourself what type of investor you want to be, pick a strategy, and stick with it. From the high in March of 2000, it took 15 years for the Nasdaq to get back to all time highs. If you can stick through that, then good luck.
Hi thank you for your detailed answer. I was actually meaning specifically investing in a fund that follows the Nasdaq. FNCMX in particular. That fund went up 29 percent which crushes me 12% managed account but I was also warned that I really got lucky and it would not be wise to put most of my money into NASDAQ fund. Which I didn’t understand because I thought the FNCMX is tracking the biggest NASDAQ companies not the random little meme stocks people lose money on. I fully expect Amazon to still be on top ten years from now
I hadn’t had the managed account for more than 4 months but the FNCMX one year return is 29.42% I don’t know what any of that means but I know it has more than doubled since I started and I have only contributed twice to it
My FNCMX grew 15.56% in 3 months and my managed grew by 7.81% That confuses me because on the phone he said it grew by 12% plus
I’ve only been managed by them since April. If I was going to follow the last decade I think the FNCMX has out performed the VOO and I would be more inclined to invest in FNCMX
Any large index fund, and hold it. FXAIX, FNCMX, FSELK, etc....
I invest in 50-50...SPY/QQQ. Mutual would be FXAIX/FNCMX. But I also have some hobby funds. Years ago I just searched the 3 yr, 5 yr, and 10 year returns and put a fixed amount in each one.
That's about my allocation at 58. SP500 index is the same, can choose either. I am Fidelity so I have FXAIX, and SPY. I have FNCMX and QQQ. I also buy long term options calls on SPY, and QQQ. You can have SPY gains, but you can't avoid the swings. Just ignore the short term fears, and panic. It is a long game. No fear. You will have down years. Just accept that. Remember swings go up as well....
**Looking for dividend funds/ETFS...** * 40 year old, currently living in Southeast Asia. * I do not currently have a paying job. * I want $2,500 in passive monthly income. * I receive my only income through rent \~$1,600 net monthly. I paid $370,000 in cash for a condo in 2022. It's probably only worth about $400-425,000 at this moment. The ROI is bad. * I have zero debt. I want to sell the condo and re-invest into dividend funds with a goal of getting $2,500 a month from dividends, after the sale of the property. Let's assume I will have $400,000 after the sale (I'm a realtor). I have $200,000 in other investments (50% between FTEC, FZROX, QQQ, FNILX, SCHG, FNCMX, ITOT) which I don't draw on for living expenses, but I don't mind reallocating. * What's the initial capital needed and selection of funds/etfs/stocks to get $2,500 in passive income after 2 months?
It being a mutual fund or etf doesn’t matter much unless you’re trying to time midday movement. That said, QQQ and FNCMX are two different funds. QQQ excludes financial companies and FNCMX doesn’t. Financial companies make up about 5% of FNCMX, so you should see a small but noticeable difference in performance.
My FNCMX is saying: knock this shit off Pre!
You do not need income until retirement. Skip the dividends and go for growth or 500 index. FXAIX, FBGRX, FNCMX, and a bit of SPYU, QQQ, QLD....
So just a few thibgs ive started to open up on. I have no idea what i am doing and would ratherhave a simplifyed portfolio of a few ETF's. I have retirement accounts but thats a more complicated issue as there pension vesting, and witholdings for 401k, roth 457 with few options for holding. AMZN AMAZON.COM IN 6.85% 0.361 FNCMX FIDELITY NASDAC 4.07% 0.193 SPAXX * FIDELITY GOVERN 0.48% 5.82 SPYG SPDR PORTFOLIC 22.54% 3 NANC SERIES PORTFOLI 6.59% 2 VXUS VANGUARD TOTA 10.08% 2 VTI VANGUARD INDE 49.39% 2
It really depends on why you want to change from FNCMX to VTI.
It's all in an individual brokerage, so taxable. So then it wouldn't make sense if I wanted to move out of FNCMX to sell some, because I'd have to pay capital gains?
If you are in a taxable account, then selling FNCMX will be a taxable event.
Is it possible to sell an index fund and buy something else, like FNCMX sell and buy VTI, without tax implications?
Hey! I’m 30F and split my Rollover IRA and Roth IRA into FNCMX, FXAIX, MSFT, and BRKB :) I invested the most into FNCMX ($45k), followed by FXAIX ($42k).
VTSAX if your young go with FNCMX then slowly convert it into VTSAX / VTI the older you get to stay rich or simply do VTSAX and nothing else
What should I swap out FNCMX for? I'm 40, no job and currently LEAN FIRE. I have FNCMX in my ROTH and another in my personal investing account both, about 6-8% of each account. These have sat here for years so the returns are good but I didn't realize the fees were so high. I Would like to liquidate FNCMX and purchase something else. I am thinking of just replacing it with FZROX which has no fees and put it in another set and forget index etf. Any suggestions?
**Basic Stats** * Institutional Owners: 22 total, 22 long only, 0 short only, 0 long/short - change of -31.25% MRQ * Shares Outstanding 6,348,624 shares (source: Capital IQ) **Institutional Owners** From Fintel (edited) * INTRACOASTAL CAPITAL, LLC : 174,054 * Hare Joshua: 1,084,888 * ARMISTICE CAPITAL, LLC: 1,836,000 * FSMAX - Fidelity Extended Market Index Fund : 4,309 * FNCMX - Fidelity Nasdaq Composite Index Fund: 500 * FCFMX - Fidelity Series Total Market Index Fund: 641 * FSKAX - Fidelity Total Market Index Fund 3,345 * VEXMX - Vanguard Extended Market Index Fund Investor Shares: 6,509 * VTSMX - Vanguard Total Stock Market Index Fund Investor Shares: 17,623 * IWC - iShares Micro-Cap ETF: 1,044 * Tower Research Capital LLC (TRC) 2,595 * Creative Planning 10,933 BlackRock Inc.: 11,141 * Wells Fargo & Company/mn 471 * Vanguard Group Inc : 24,132 * Jpmorgan Chase & Co: 129 * Pnc Financial Services Group, Inc.: 297
Edited information from Fintel * Institutional Owners: 24 total, 24 long only, 0 short only, 0 long/short - change of 14.29% MRQ * Institutional Shares (Long): 853,409 - 1.41% (ex 13D/G) - change of -0.13MM shares -13.52% MRQ * Institutional Value (Long): $ 1,255 USD ($1000) Investors (edited to remove zero value rows) * Brandywine Oak Private Wealth Llc * FNCMX - Fidelity Nasdaq Composite Index Fund * Simplex Trading, Llc * Geneos Wealth Management Inc. * Strengthening Families & Communities, LLC * Raymond James & Associates * Paragon Capital Management Ltd * Dixon Mitchell Investment Counsel Inc. * Virtu Financial LLC * Morgan Stanley * Citadel Advisors Llc * Citadel Advisors Llc (calls) * Federation des caisses Desjardins du Quebec * Royal Bank Of Canada * Bank Of America Corp /de/ * Scotia Capital Inc. * Toronto Dominion Bank * Bank Of Montreal /can/ * Renaissance Technologies Llc * National Bank Of Canada /fi/ * UBS Group AG * Hrt Financial Lp * TD Waterhouse Canada Inc. * Citigroup Inc * Group One Trading, L.p. * MMCAP International Inc. SPC * Susquehanna International Group, Llp Short Interest: || || |Settlement Date|Publication Date|Short Interest| |2024-07-15|2024-07-24|1,000,616|
I thought about moving it over to FNCMX that tracks nasdaq for about half the fee and maybe rebalancing it so it was under 20% of my portfolio. When I went into TRBCX it just seemed like such a good time to buy tech but really didn't expect it to double the pace of everything else in the market and didn't have an exit strategy.
Put in a stop/limit order (no expiration) for all my whole shares of FBTC and exchanging all my FNCMX shares for FDLXX. I'm taking the win and sitting on the sidelines until January.
I prefer Fidelity interface. Have tried most of them. FNCMX or QQQM.
Is adding FNCMX worthwhile, considering I have FZROX? I followed your advice for 2023 and split into the three previously mentioned ETFs, but am considering adding FNCMX to the Roth portfolio for 2024.
I have VFIAX and FNCMX. There are ETF versions but I wanted to set up monthly automatic investments.
Its is nasdaq 100 index. Same as QQQM, FNCMX. More tech heavy. You can look at the holdings of these.
I have QQQM in my HSA. I opened the HSA in January of this year, and bought it shortly after. It started out as 27% of that account. I bought it over QQQ because it's cheaper, and it has a lower expense ratio. I also have FNCMX in my taxable brokerage. Unfortunately, it is only a little more than 2% of that account. I wish i would have bought more because my (unrealized) total return on it is now almost 50%. I have been holding that mutual fund since December 2022.
Have tried to stock pick many times in my life thinking I could beat the 500. Have taken 50K and given myself 2 years. I would be happy flipping for a thousand here, thousand there, then get in a losing position that would take my capital, or lock the capital up waiting for it to come back. Never beat the 500 long term. Had my winners. Eventually had 40K of AAPL, and the stock soared. I could not sell it due to crushing capital gains tax. That was in 2018, and now it split, and soared again. Have 1000 shares, after liquidating 100 shares a year....and it still zooms. Now I am 35% 500, 35% QQQ, and the rest in AAPL, as well as specialty indexes....FSELX is a shining start last year...but heck FNCMX did 50% last year.
With my entire NW. 35% 500, 30% QQQ, 35% AAPL, specialized index funds, and smaller stocks/option. 500 funds= VOO, FXAIX, SPY, etc. not much difference. Nasdaq funds= QQQ, FNCMX, QQQM.
FXAIX, FNCMX, FBGRX, and FSELX. 25K in each one.
Yes. I have large holdings of FNCMX, FXAIX, as well as the ETF versions. Investing is long term...like a ten year window if not longer. First off use the flow chart to get the money into the correct investment vehicle....401k, roth, brokerage, debt, etc. Once in the right account I would half SPY (or 500 equivalent) and half QQQM (or nasdaq equivalent).
Voo needs to be the base. From there wander out. I have FSELX, FNCMX, and many others that beat the 500....In the long run the 500 as a base is solid. The ones you mention are Chips, and tech which like the nasdaq have beaten out the 500. I mix about 50% in the 500, and the other 40% in indexes like this. I also have about 3% in long term options on QQQ and SPY along with AAPL which has outgrown itself to about 5% which I cannot get out of it due to capital gains taxes.
FXAIX is the base. All in on the 500 at 28 should be the choice. More aggressive than FNCMX with half of it.
I have tried many investment companies and have landed with Fidelity. I am mainly an index/etf investor. I search the 5 and 10 year returns and pick the larger gains based on the holdings. Mostly in FXAIX, FNCMX...or SPY and QQQ. I do not really a house as an investment but a lifestyle. IF you can live rent free for a while and it is an acceptable lifestyle...then take advantage of that. Keep expenses in check. Live within what you earn. Do not get payments into a place you cannot live a good life. Do you want a month where you are short money? One thing time based is getting into a ROTH/IRA. There are limits per year, so best to get something in every year as it cannot be made up later.
VGT is much more aggressive than either two. I feel VOO is a base rather than SCHD, and VGT should be in the mix as well. I have the 500 fund in several forms as 50% of my assets. Nasdaq (FNCMX) as about 20%. AAPL 5%, then the rest in various funds and long term options.
This my thoughts exactly. Everyone saw these 5% rates and missed QQQ going up 54% this year. My semiconductor fund FSELX went up 77%. Heck FSKAX went up 25%. OP- Who told you bonds were a good choice with a 30 year horizon. Just curious how you got there. The fund you mention is a great fund. I also have FXAIX, FNCMX, FSELX, FNILX, FOCPX as well as others.
The standard is the 500 index, This has been my lifetime base investment. FNCMX or QQQ has been added in to the mix and is more agresive. Bonds I just will not do, and do not even see value as an investment vehicle. BND returns are abysmal. Now super aggressive I have TQQQ, and XXXX in small amounts to just have fun watching.
Aggressive index funds FNCMX or QQQ. Very aggressive XXXX or TQQQ The standard FXAIX I dont mess with Bit coin, but dam wish I went in at 2000. Same with FB it was offered at 20, and was down to 14. Amazon,,,,should have bought that when I went prime. I did buy AAPL at 50....and it has split several times. But other than that I get my ass kicked on individual stocks.
That’s one point in favor of mutual funds over ETFs. With an ETF you have to give each buy order, but a fund can invest you automatically. If you want to be hands off (or feel you *should be* hands off because looking at the fluctuations makes you twitchy) it’s worth whatever fraction of a percent difference there is in expenses. (From what I’ve seen it can go either way; FNCMX is more expensive than QQQ but FSKAX is cheaper than VTI. The tax differences tend to favor ETFs, but they aren’t big either.)
You are mixing account type and investment type. Account will be a brokerage after you have maxed out everything in the flow chart. Investments...I like FNCMX, FXAIX, and then sector funds like FSELK.
Hate the target fund. Full aggressive with FXAIX and FNCMX
If you want aggressive just go with FNCMX or QQQ. Nasdaq index. I have tried trading several times in my life and cannot beat the index funds, so I now am just the index funds. Probably would have doubled your money since 2019. Stop thinking you can beat the market...
>10% - FSPSX I'd increase this (common current recommendations are for 40% of stock to be ex-US) and change it to FTIHX or FZILX instead. FSPSX ignores emerging markets, or do you want to do that for some reason? >I know there is some overlap between FXAIX and FNCMX, but FNCMX has had better returns for the prior year, 5 years, and 10 years. That's not a good way to choose investments. Winners don't stay winners forever. You should be looking at the fund's inclusion criteria. Does the following make any sense to you: "I'll hold extra Pepsi but not Coca-Cola, only because Pepsi trades on the Nasdaq exchange and Coke trades on the NYSE?"
FXAIX or FNCMX majority for 40 years in Roth IRA?
It seems like FNCMX has a better track record than FXAIX, and it's listed as NASDAQ Composite Fund. For retirement, which would be a better idea?
FNCMX is the same investment. I am heavy into it and have several tax lots over 100% gains. This is one of my long term investment indexes along with FXAIX, and others.
What does everyone think of this Roth IRA allocation? I am about 25 years away from retirement: 20% US Large Cap (FXAIX) 20% US Mid Cap (FSMDX) 20% US Small Cap (FSSNX) 20% Int'l Developed (FSPSX) 10% Nasdaq Composite (FNCMX) 5% REIT (FSRNX) 5% Emerging Markets (FPADX) Contribute the max annually, rebalance annually.
Just do AAPL, FNCMX and FXAIX. JEPI is crap but it is light years better than the remaining three. FASMX especially is worse than a savings account. We have just had a very interesting 3 years. If a stock/fund/ETF hasn't done well _at any point_ during those totally different three years, it will never do well.
If you cannot beat FXAIX, or FNCMX then just put it in an index and forget about it. Chasing ghosts will get you no where.
FNCMX Nasdaq FXAIX S&P FSKAX DOW
FNCMX is about 50% of our portfolio. We get yelled at by advisors to diversify, but that fund hasn't been contributed to since 2016...we just playing with house money on that one.
My broker account is 90% FSELX, a semiconductor fund, my retirement account is a mix between that, FTEC, a technology fund, and FNCMX, a fund very similar to the S&P 500.
Hey! Just looking for opinions and suggestions on asset allocation for my Roth IRA. 25% FZROX 25% FNILX 25% FNCMX 25% FSPSX Also considering adding FSELX, FSHOX, and FFIJX. The percentages would be adjusted but not sure what the ideal asset allocation would be, I am very open to high-risk taking due to my age. Any advice on ideal asset allocation is appreciated!!!
I don't know why people downvoted this. This is true if anyone backtested any TDF. TDFs under perform the S&P 500 and a Total USA funds. Example from Jan 2015 to December 2022 and DCA $500 monthly: - FXAIX (S&P 500) 9.93% average return. - FNCMX (Nasdaq Composite) 9.37% - FSKAX (Total USA) 9.16% - FDKLX (2060 index TDF) 5.89% The S&P 500 was nearly double the TDF in terms of performance. Also, the index TDF expense ratio is 0.12%. Not a lot, but compared to 0.015% for the S&P 500 and Total USA fund is far overpriced for it's underperformance.
Do I have sufficient diversification in my Roth IRA? Any suggestions? Fidelity is saying I need to invest in more foreign stock. I have mainly funds/ETFs. My positions are the following: ​ CBRE FNCMX FSKAX FTBFX FTEC FTEC IVV QQQ RYU XLRE
I invested in FNCMX about 8 years ago and it’s up about 61% since then, it’s been good to me!
Both will have overlap. Personally I go with 40% FSKAX, 40% FXAIX, 20% FNCMX. This would only be good if you have longer time frame 10 years+. You can also add a mix of roughly 5% FBGRX, FSELX if your feeling more aggressive, both are good funds.
First, a target date retirement fund is an investment you hold *in* accounts like a Roth IRA or a brokerage, it is not its own separate account type, like those. Do you hold it in a 401k? Another brokerage, perhaps? In any event, FNCMX is a Nasdaq fund and FSMEX is a 'medical device and tech' fund. I would certainly myself prefer a broader US stock fund (like FZROX or FSKAX) as opposed to those narrower ones. I assume that's the diversification comparison you're making, as the target date fund likely already holds some type of broad US total market fund (so you wouldn't be diversifying from those holdings).
Just looking for some advice. I currently have a target date retirement fund, a Roth IRA and a brokerage account. My Roth is in FNCMX and my brokerage is in FSMEX. I've been wondering if it would be wise for me to switch either my Roth or brokerage from one of those options to something like FZROX to give me more diversification?
Thanks. I currently hold positions in FCPVX, FIGFX, FLCEX, and FNCMX. I also have a bond fund (FTBFX) but I only have about $500 in there.
It doesn’t matter, but you should always lean more towards the companies/stocks that have performed well in the past 2-5 years. I trade with fidelity and their research platform is great at searching index funds for what to buy. I own a large amount of one called FNCMX and I always invest into funds vs individual stocks because if one company is doing bad, then the entire fund can still make positive gains, and personally I always seem to have bad luck with buying individual stocks.
Hey everyone, I recently changed my portfolio to be 75% FXAIX (Fidelity SP500 Index Fund) and 25% FNCMX (Fidelity Nasdaq Composite Index Fund). I was wondering if I should just skip the Nasdaq one and throw it all into the SP500 fund? I know they have a lot of overlap, and that the Nasdaq is more tech weighted so I wasn’t sure if there was really any point to do both over the long term, or if you guys had any more insight for me. The additional tech exposure isn’t really a make or break for me. I am in my early 20s and I invest every week into both funds at their current allocation. If anyone could give me their opinion or advice I’d greatly appreciate it. Thank you so much!
Hey everyone, I recently started investing more and have set my portfolio to be 75% FXAIX (Fidelity SP500 Index Fund) and 25% FNCMX (Fidelity Nasdaq Composite Index Fund). I was wondering if I should just skip the 25% FNCMX and put it all into FXAIX? I know there is a lot of overlap between the two (with FNCMX being weighted more towards the tech side of things), but it has outperformed previously. Just want others' thoughts on the matter. If it helps I am in my early 20s and I contribute every week to both of these funds with the allocation I stated above (75% contributions in SP500, 25% in Nasdaq). Thanks for any help or insight you can give!
Or maybe it's the Dunning-Krueger effect, now that I know quite a bit about investing I think I know a lot. So, stay the course? Even though these are in mutual funds that I was planning to get out of and even though I'll be exchanging FNCMX and FOCPX (my two biggest holdings) for QQQ, and FXAIX for IVV. So it's largely going to be a like to like exchange. I might lose a percent or two here if the market goes up and gain a lot if the market goes down. I could wait for the next ATH to get out per my plan. I just set up the limit orders BTW. It turns out I can't set any stops with mutual funds so I can't prevent it from being sold at a lower level than it is now, just have to watch the market. I also am 100% in growth or blend, not a single value investment and I've been thinking of having a full 50/50 growth/value mix in my investments. But you're right, with my luck, this will mark the end of the correction and we'll be off to ATHs right after I sell. Watch this space if that happens.
I'm an interesting situation. I just never realised this, but I started investing in 2000 with my employer. I invested through the dot com bust and then the financial crisis. In 2014 I left my employer and rolled it over into an IRA, these are five mutual funds (mainly FXAIX and FNCMX). Even from 2015, the funds have more than doubled but over 23 years I am still about 20% CAGR, maybe a bit lower, even with a 17% drop compared to ATH. I've not touched this account because I wanted to leave well-enough alone. But now I'm seeing all these people talk about a crash of 50% or 70% or whatever. I could hold it through that also. I still have another 22 years for RMD age and I'm not sure when I'll need this money but at the same time since there's been so much profit, I'm thinking of selling it all and putting it into the following ETFs: QQQ, SLYV mainly at 50/50. I've been meaning to convert the mutual funds to ETFs anyway and I was just waiting for things to come back to their all time highs but I'm thinking now may be an even better time. I could sell and immediately buy back these ETFs, which would be wash but I was thinking of a quick DCA/EDCA over a period of 3-6 months so large sums would be invested and I'd buy more as the market dips. If the market starts to go higher, then I'd just buy back in quickly. What do people think? If the market dips a lot more, I'm not too late. If we're at the end of a correction then I'd lose a bit but not a lot. But if we're at the beginning of a prolonged downturn, I'd gain a lot and it'd let me restructure my investments with my new knowledge and using ETFs instead of mutual funds. Selling won't incur any taxes.
FNCMX is a Nasdaq fund, tracking all the stocks on the Nasdaq. this fund has a very high valuation, P/E ratio of almost 31. I would not put too much in to this fund on the P/E ratio alone. FITLX has a lot of crossover with FNCMX so it's not very well diversified to have these two funds. look under "holdings" and you'll see a lot of the same names. https://finance.yahoo.com/quote/FITLX/holdings?p=FITLX https://finance.yahoo.com/quote/FNCMX/holdings?p=FNCMX
I set a couple thousand in cash from my paychecks aside every month if I can. Every time the market drops 5%, I put 5K into index funds. If it drops 10%, 10k. etc. I have 30K in emergency funds I'll never touch (hopefully), but am sitting on about 60k on top of that right now after dropping 15K into VTSAX and FNCMX last week. Will drop another 20K in at the end of this coming week if we see a 20% decline. Then another 30K if it goes down 30%. At that point Hopefully I can just back and watch the gains while I accumulate a couple G's cash more each month again until the next correction....
I'm in the same boat. Had 80k on the sidelines waiting for this. Don't try to time the bottom though. I'm putting in \~10% of my savings in for every 5% it goes down. Just dropped 6K into VTSAX yesterday, and another 8K into FNCMX today. If it's down another 5-10% next week, I'll do it again. Rinse & repeat. I'm not making the same mistake I did the previous 3 crashes where I panic sell 20% down and then time to time a reentry.
Can anyone tell me what I’m doing wrong or what I can do better? I’m putting another chunk into the market tomorrow and want to be wise but am generally new to investing. So far am split between the following: • FBGRX • FNCMX • FOCPX • SPY • TSLA What should I change? What next?
If you haven't review the flow chart on personal finance and follow the where to put your money...Ie debt, Roth, etc. Understand that IRA, Roth, and brokerage are types of accounts treated differently for tax purposes. As far as what fund to pick I would go with a Nasdaq index like FNCMX, and a 500 index like FXAIX. And these are long term investments....so do not panic with a drop, or pull out on a pop.
Stocks: AAPL, TSLA. BRK.B ETFs: SPY Mutual Funds: FNCMX, FBCGX
In my taxable brokerage account, I have 70k in VUG, 20k in VOT, 8k in FTEC(since 2016), and put 21k in Facebook(buying the dip in December 2021). Roth IRA: 32k FNCMX(fidelity NASDAQ index) and 16k in IHI(Ishare medical device equipments). You don’t to follow everyone in putting your in the SP500 index, because there thousands ETFS out there that will fit your risk appetite. I love growths ETFs, and I am willing to step out to buy large cap growth individual stocks like Facebook if I am confident there’s an opportunity.
If you have a time horizon of 10+ years, then you can't go wrong with a broad market index of 100% stocks like the S&P 500 or Nasdaq. Fidelity is great for mutual funds. I've heard great things about Vanguard, although I can't speak from experience. If you open a Fidelity brokerage account, you can set it to automatically invest $50 in the Fidelity S&P 500 Index mutual fund (FXAIX) on the 1st of every month. It has an expense ratio of 0.015%, which is really low (this is good). Another option is the Fidelity Nasdaq Composite index mutual fund (FNCMX). These both have 0 minimum investment requirement and no transaction fees or load. Finviz (https://finviz.com) has excellent research tools. As does Fidelity, Bloomberg, and CNBC. The wiki in the sidebar of this sub has some great resources. When it comes to long term investing, it helps to have a plan and stick to it, through the good times and the bad.
You should have 0% in bonds. That's what I have - 0% - and I'm much older than you (the older you are traditionally the more you have in bonds). Interest rates are very low, and after accounting for inflation real interest rates are negative, so bond funds are losing you money after adjusting for inflation. If interest rates rise the value of the bonds in the fund will drop, so you'll lose even more money. An alternative to bonds is the Fidelity Real Estate Index Fund (FSRNX), which will add diversification. You should have a cash position of around 10% so you can take advantage of buying opportunities when the stock market corrects. You have some redundancy with two large cap funds and two international funds. You might want to consolidate those. The total allocation of 34% to international stocks seems high. You might want to reduce that and shift funds into the Fidelity® Nasdaq® Composite Index Fund (FNCMX), which gives you the large tech stocks like AAPL, AMZN, MSFT, GOOGL, FB, NVDA, TSLA, ADBE.
Thanks! I appreciate your response sincerely but that's not what I'm seeing with my mutual funds which is why I asked. I invested in FBIOX @ 21.80 on Dec 17, 2014 with 2329 shares. I've not added a single dollar myself. Today FBIOX is @ 21.89 but I have 4112 shares. It's a gain of nearly 80% even though you can see that the start/stop price has barely changed. It's the same with all my mutual funds. Roughly 40% of the gains are coming from dividends and these are index funds like FNCMX and FXAIX mostly and the situation is more extreme there but the above example has very similar starting and ending points. This is in an IRA so I can't add any more funds but yet the # of shares have grown by that 40%. So in terms of tax treatments, when I withdraw (take RMDs), do I pay cap gains taxes on these gains or do I get taxed as regular income or both?
If you are investing in a brokerage account then go with ONEQ for the lesser capital gains taxes. If in an IRA or 401k then go with FNCMX to reinvest short and long term capital gains. Fidelity allows you to invest incrementally in mutual funds. where as with ETFs (ONEQ) you have to purchase whole shares. Double check, but the minimum investment in FNCMX is $5, compared to the live price of purchasing one share of ONEQ. One share is the minimum purchase for an ETF. ​ Good Luck! Starting young ensures a prosperous future!