What's a good aggressive Fidelity mutual fund?

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It's been good to me. I have money in both in my 401(k) as well as say 20% international. That's not been as much fun, but overall, I'm still doing well.

More importantly, when my daughter turned 18 about two years ago, I got her to start funding her 401(k) at Starbucks to get the full matching money at a minimum. She did and is now increasing her contributions every time she gets a raise she adds another 1% to her contributions as it's money she won't miss as she's never seen it before.

Similar choices, an S&P500 index and some target date funds with relatively low fees.

But getting her in the habit of paying herself first...

Originally Posted by Wolf359
Originally Posted by javacontour
How did the advice from 8 years ago turn out?

Since the thread has been revived, I wonder how the various suggestions panned out.

Originally Posted by Quattro Pete
Thanks guys.

FYI, this thread is 8 years old. A spammer necroposted.



Well Contrafund has been doing better than Fidelity's S&P 500 index fund over the last 5 and 10 years, about 1-2% points better.
 
I know you are lot younger than me. Trust me when I tell you to just invest in low cost indexed fund regularly and forget chasing the previous high fliers. I wish somebody had drilled this in to me when I was younger.

P.S. Never mind; did not realize this was 8 year old post! Never the less, advice still stands if somebody is asking that question today.
 
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What's a good tax free invesrment fund these days? Meaning no taxes on investment income.
 
Originally Posted by ZeeOSix
What's a good tax free invesrment fund these days? Meaning no taxes on investment income.


I don't think you are being ignored, I just don't think there are any. My advisor got me into a Fidelity fund that involves soon to expire tax free bonds, but I got out when I found after the fund fee, they made virtually nothing. I didn't like the idea of my money making them more than it made me.

Personally, if you are worried about taxes, I think you are better off in stocks or funds that rely on capital gains and not dividends. Pay the taxes on the capital gains, which are minimal. As an example, Berkshire Hathaway B doesn't pay a dividend, and the only tax you will pay is on the capital gains when you eventually sell, providing you hold it past the short term period, and there are gains (pretty safe bet).
 
Originally Posted by ZeeOSix
What's a good tax free invesrment fund these days? Meaning no taxes on investment income.


Who cares? You should focus more on returns. I'd rather get a 25% return from Contrafund than some 5% to 10% return on a tax free fund.

Or you could just buy Berkshire Hathaway class B shares, no dividends so no taxes til you sell.
 
Originally Posted by ArrestMeRedZ
I suggest you look at FCNTX (Contrafund) recommended above as a good aggressive fund to hold long term.

What's the difference between FCNTX and FCNKX?
 
Originally Posted by Quattro Pete
Originally Posted by ArrestMeRedZ
I suggest you look at FCNTX (Contrafund) recommended above as a good aggressive fund to hold long term.

What's the difference between FCNTX and FCNKX?


Well the first one regular buyers can buy and the second one is limited to institutional buyers so as a regular retail buyer, you can't buy the second one. The expense ratio seems to be .09 cheaper.
 
Originally Posted by ZeeOSix
What's a good tax free invesrment fund these days? Meaning no taxes on investment income.


Good and Tax Free aren't found together in very often.

The Bond funds that have tax free yields have really low returns, and since many are Muni bonds, there is a much larger risk of default than there used to be.

I would re-focus on "tax efficient". For that, an S&P 500 index fund, or a total market fund (Vanguard has some excellent options) would be a good move.

In a mutual fund - you'll have to pay taxes on the capital gains from each trade within the fund. Which means that if the fund churned the portfolio, and made lots of sales, it would generate capital gains, on which you pay taxes, regardless of the change in Net Asset Value*.

So, to be tax-efficient, you want as few trades as possible, and that means index, in which the index remains relatively constant.

You won't pay capital gains tax on your Index Fund until you start to sell shares. So, it's tax efficient in that the taxes won't come due until you decide to sell.



* Which is exactly what happened to me. In the November of 1994, I bought shares in Newberger and Berman Guardian Fund. Hot fund. Recommended by the guys at work and by Money Magazine. Bought $3,000 worth of it (minimum initial investment). On 01 December, the issued the capital gains, and even though I had only been in the fund a few weeks, I was on the hook for the annual gains: $600. So, I had to pay taxes on $600 of gains.

At the same time, the fund lost value sharply.

So, I had lost money, overall, and had to pay extra taxes anyway.

An early, painful, lesson in investing...
 
Originally Posted by Wolf359
Originally Posted by Quattro Pete
Originally Posted by ArrestMeRedZ
I suggest you look at FCNTX (Contrafund) recommended above as a good aggressive fund to hold long term.

What's the difference between FCNTX and FCNKX?


Well the first one regular buyers can buy and the second one is limited to institutional buyers so as a regular retail buyer, you can't buy the second one. The expense ratio seems to be .09 cheaper.

Thanks!
 
If you had continued to invest in that fund, say $3K every year from 1994, or even better $250 per month, how much that would be today?
 
Originally Posted by Vikas
If you had continued to invest in that fund, say $3K every year from 1994, or even better $250 per month, how much that would be today?


Interesting question.

Since they charge nearly 1% in management fees, and since they've underperformed the market absymally (in 1997, the fund NAV was $25/share, today, it's $20), I would have been better off stuffing that $250/month in my sock drawer in cash.

Fortunately, since my initial experience with them, I rolled the $$ into the Total Market Index Fund at Vanguard who's NAV is up over 500% over the same period...

Thank the Lord I didn't stay with NGUAX!
 
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