https://investorplace.com/2020/01/7-best-of-the-best-fidelity-funds-to-buy/7 Best of the Best Fidelity Funds to Buy
These Fidelity funds are some of the best from the issuer's expansive lineup
Many investors think of Fidelity as a giant in the actively managed mutual funds space. That is true, but Fidelity funds run the gamut of actively-managed mutual funds to passive index funds and exchange-traded funds (ETFs).
Comments
I agree with your observation of FBALX. At .53% E.R. and a since inception (1986) annualized return of about 9.3%; well, if one is doing better than this, then stick with your plan. If one wants to retire from meddling with their portfolio; this fund, as well as whatever moderate allocation funds one has access to, may provide your managed account choice without the need of an advisor.
I read through the article, and perhaps some folks have or still do consider Fidelity to be pricey. If so, they have not done their homework and also do not understand or know the history of Fidelity and its positive impact upon the investing marketplace helping provide the diverse and inexpensive investments available to the small, individual investor today.
Fidelity, along with Vanguard and Schwab placed enormous pressure into the diversity and pricing of mutual funds, especially during the 1980's. Their actions then (forcing the high loads on mutual funds of companies as Merrill Lynch and the rest to have to re-do these fees or lose customers) and today; with their continued pricing and offerings pressures still to the benefit of the small, individual investor.
As to the choices in the article, well; as usual, everyone will make their appropriate choices.
Disclosure: A Fidelity customer for more than 40 years and biased to the favorable side of investing with them.
From Jan 3, 2018 to Jan. 2, 2020; about 29.6% total return for FCPGX.
While I agree that there is huge overlap between the portfolios, the mixtures are significantly different. Puritan has an average market cap of $112B, while Balanced's is a smaller $73B. Puritan is a growth-heavy fund (54% growth stocks), while Balanced is a bit more shall we say balanced, with 33% growth, 26% value. Puritan's turnover, at 132% is double that of Balanced's 60%, but that high turnover could just be the result of a new manager having overhauled the portfolio in the past 1.5 years.
On the other hand, management at Balanced turns over frequently enough that even if the two funds are clones today, Balanced will turn into something else tomorrow.
Consider FZIPX which is lauded in the column, and FSMAX. They both are extended market index funds. However, they follow different indexes and have different attributes. Good candidates for substitution, but not clones. In fact, because FZIPX has a cash component 26x as large as FSMAX's, its cash drag alone costs more than any savings that FZIPX offers with a zero ER.
So even index funds where management is much less of an issue may not be clones. And there's more to finding good funds than picking the ones with rock bottom costs. Which is what the author of this column seems to have done.
WSJ, Aug 5, 2003: "Fidelity Investments said it spun off an in-house investment firm ... Fidelity, the nation's largest mutual-fund firm, launched the company, called Geode Investors LLC, two years ago."
There was a thread recently that discussed voting records of fund families. The article cited in that thread said that Fidelity's index funds had a decent record. The reason for that is Geode. Geode has been voting the proxies for the Fidelity funds it manages. As I recall, even back in the 2000's, Geode had a better voting record than Fidelity.
FBMPX, FCYIX, FIDSX, FSCPX, FSENX, FSPHX, FSPTX, FSUTX
I would think FSENX might hold up. FSUTX and FSPHX might too. The rest could be toast.
This fund lacks a competitive advantage. Summary by Greg Carlson Nov 14, 2019
"An unstable manager lineup and an undistinguished process earn a downgrade of the Morningstar Analyst Rating of Fidelity Balanced to Neutral across its share classes.
This fund is led by Robert Stansky, who can make shifts of 10 percentage points to its neutral allocation of 60% stocks/40% bonds. The equity portfolio maintains a sector-neutral position...."
(this is all I can access without a premium membership)
As catch 22 noted above the fund has returned 5.35% over the past year, 9.53% over the past 3 years, 7.97% over the past 5 years and 10.34% over the past 10 years. Feelin' lucky punk? I would like to read more just to see what this guys issues are with the fund and what he proposes as better substitutes. I'm almost willing to bet that it begins with 'Vanguard'. I'll forgive him a bit if it's PRWCX but only a bit because it's closed. This is why we (I) tune out analyst noise for the most part.
Kinda strange many times where these folks (in this case, your Greg Carlson notation) obtain their take or bias or whatever helps them form an opinion. I don't understand his statement about Fidelity management of this fund, FBALX. Perhaps Greg should look at the chart below. You, I and many here do the grain of salt thing when reading where we should or should not be investing our monies, eh? Continuing edumacation, yes?
Anyway, just for the heck of it; I picked a few balanced funds to chart back to Nov. 2008 (this limit because of etf, AOM inception). This is a random selection of funds, most well known, that popped into my head. I have not done any analysis as to how these match up; but are generally in the 70-50% allocation for equity to the best of my knowledge. Eight are active managed, one etf and one index.
For those I've known over the years and don't want to make things worse from their own meddling, I always suggest a look at these type of funds.
Charts below are total return for the period.
First chart is 5 listings with the names at the fop of the chart.
This chart is a bit busy, with the first 5; and another 5 added.
Have a good remainder............back to me chores.
Catch
FBALX - Asset Allocation
Rel Vol of 0.73
2019 - 2.4% in Dec 24.4% for year 11.6% for 3 yr. 8.4% for 5 yr 10.0% for 10 yr
I would call it a keeper - If I had a spot!
M* LISED AS 5 STARS
LISTED MANAGERS:
Douglas Simmons
since 9/9/2008
Pierre Sorel
since 9/9/2008
Robert E Stansky
since 9/9/2008
Steven Kaye
since 9/9/2008
Brian Lempel
since 4/10/2013
John Mirshekari
since 10/22/2016
Nicola Stafford
since 8/3/2017
Jody Simes
since 11/8/2019
Ashley Fernandes
since 1/1/2020
Melissa M Reilly
since 1/1/2020