I have made it my life’s work to know everything there is to know about Fidelity. Since my flagship Fidelity Investor newsletter was published in 1998, I’ve often let my readers know that I am a huge fan of Fidelity—for good reason. Fidelity has so much to offer investors who are looking to grow and maintain their wealth.
Everyone knows that if you’re looking for growth funds, Fidelity is the place to be – Fidelity’s selection of growth funds has no rival in terms of quantity and quality.
Don’t make the mistake of thinking that Fidelity is only a growth fund shop, though! With more than $800 billion under management, Fidelity’s diversified fixed income lineup is second to none. And there are also some true gems amongst Fidelity’s value funds.
About Jim Lowell
Jim is an unapologetic and independent voice for Fidelity shareholders who want better returns and less risk from their Fidelity funds.
He’s studied Fidelity for more than three decades, worked at the company and even “wrote the book” on it: “What Every Fidelity Investor Needs to Know” (Wiley, 2007).
Jim is the go-to authority for all things Fidelity and has appeared frequently on Fox Business News, and in Forbes, Barron’s, Businessweek, The New York Times, the Wall Street Journal, fortune, Investment News, Money, and Smart Money to name a few.
Jim was educated at Vassar College (B.A.), and holds Master’s degrees from both Harvard University, and Trinity College. He’s a former teaching fellow at Harvard University and lecturer Northeastern University College in Boston.
If you’re looking to invest overseas – an important component to a diversified portfolio that many investors have shied away from during the U.S. bull market – Fidelity has an abundance of top-notch international funds to choose from.
And don’t forget Fidelity’s unique lineup of actively managed Select sector funds: I have an entire newsletter dedicated to following and investing in Fidelity’s sector funds, Fidelity Sector Investor.
Long story short: It’s hardly surprising then that Fidelity has 513 funds to choose from!
With that sort of selection, the task of choosing the right Fidelity funds for your investment portfolio may strike you as challenging, even daunting.
What’s more, after thirty years in this business, I’ve found that fund labels can be misleading. You need to check under the lid of each fund in order to make sure that the label reflects what’s inside.
So how can an investor know which funds are the best—and which are bust?
That’s where I come in.
My name is Jim Lowell, and I’ve spent my career analyzing Fidelity from every possible angle.
I have fastidiously tracked the gamut of funds and ETFs Fidelity has to offer—analyzing short- and long-term performance data, evaluating risk/return values, speaking with fund managers, and much more—to prove that having the right funds in your portfolio can make you rich.
Built with the best funds Fidelity has to offer, my model portfolios have delivered outstanding returns to Fidelity Investor readers for over nearly two decades.
Let’s take a look at one of my model portfolios. Like all of my model portfolios, my Aggressive Growth portfolio is well-diversified across Fidelity’s vast product offerings and invests in some of the best managers in the business. And my fund selection has paid off. The following chart shows how a $10,000 investment would have fared since April 1999 for the average Fidelity investor, versus my Aggressive Growth portfolio:
Fidelity Investor Aggressive Growth vs. the Average Fidelity Investor
(Growth of $10,000 since 1999)
As I mentioned earlier, I can definitively state that Fidelity gives you the greatest chance to meet your investment goals. You just have to know where to look – and sometimes it’s not where Fidelity says to.
Answering the question of which Fidelity funds are best for your money right now has never been more important – or challenging.
That’s why I’ve written this report for you. Using my inside knowledge on all-things Fidelity, not to mention poring over all of Fidelity’s hundreds of funds, there are 5 standouts funds I’d buy first with new money right now.
They are not only perfectly positioned for this confusing investing climate, they each benefit from a secret “X Factor” that separates great funds from just OK funds.
Let’s start with…
Fidelity’s Top Fund #1:
Select Healthcare (FSPHX)
Manager, Eddie Yoon
Fidelity has 50 equity sector funds and ETFs, but there’s one that’s my favorite.
It’s run by Eddie Yoon, a budding superstar manager, who has turned down a bunch of opportunities to manage more diversified funds because he knows this is where he can shine the brightest.
I’ll be honest; I’d recommend this fund even if Eddie was only mediocre because it focuses on a sector that has almost limitless opportunity, exploding demand and a locked-in and growing customer base around the world.
But Eddie isn’t just OK, but a tremendous money manager with foresight, wisdom and patience to crush his benchmark 381% to 270% since 2008? Well I’m all in.
And you should be too.
Sector Savant Smashes His Benchmark
Fidelity’s Top Fund #2:
International Small Cap Opportunities (FSCOX)
Manager, Jed Weiss
Another fund I’m very high on right now is run by a top-notch manager, Jed Weiss, whose specialty is finding great small companies outside the U.S.
Going global to find great small-cap stocks is the perfect strategy right now–not only does diversifying internationally give you direct access to fast-growing economies, but the IPO market in the U.S. has dried up considerably.
That means fewer good small caps to choose from, and higher odds of overpaying for the truly great ones.
So going global is one of the best ways to tap into the long-term growth that properly-chosen small stocks can give you at a reasonable value.
To do it right, you need a manager at navigating international waters, with all the regulatory, political, and currency complications that involves.
And Jed has proven his mettle since he took over this fund in October of 2008. He’s returned 235.3% vs. the fund’s benchmark of just 173.0%.
You may have heard that Jed has announced he will be taking a personal leave of absence from this and his other fund International Growth from June to November this year. I had a chance to catch up with Jed shortly after his leave of absence announcement, which confirmed my already strongly held view: Jed is among the most passionate and committed Fidelity managers you’ll ever meet, and he’s clearly scheduled his time and timing for maximum return.
The chart below shows just how he’s created value for shareholders, and his fund can do the same for you!
Small Cap Champ Dominates
Fidelity’s Top Fund #3:
The Global Income Explorer
This top fund is unique in a couple of ways.
First, it’s a bond fund. I think too many advisors don’t pay enough attention to the benefits of bonds even in this low-interest rate environment. There’s a lot to be said for steady income, low volatility and an investment that can gain in value when stocks go down.
Second, it invests in a wide-range of bonds from emerging markets. That may sound a bit risky at first blush, but this fund’s manager has been in the emerging markets bond business longer than some of those emerging market countries have actually been around!
Investors are right to be nervous about China, Russia and the tanking commodity prices that so many emerging economies depend on, but this manager has sifted through the bargain-shelf merchandise to come up with surprisingly strong securities for his portfolio.
Here’s what I mean: the fund yields almost three times more than our own 10-year Treasuries, but without taking big risks – its volatility is 28% lower than the S&P 500.
I have a number of favorite plain-vanilla bond funds that I like for diversification, but if you trust great managers who win in both bull and bear markets like I do, definitely check this one out.
Fidelity’s Top Fund #4:
Value Discovery, (FVDFX)
Manager, Sean Gavin
I pride myself on being able to spot rising stars at Fidelity, and Sean Gavin has been one I’ve liked ever since he proved himself at one of Fidelity’s best-performing sector funds.
Now he’s graduated to a fund that I firmly believe is going to be one of Fidelity’s top performers in a few years’ time. Why not? While being co-managed by this rising star, the fund has outperformed its benchmark over its 1-, 3-, 5-, and 10-year time periods. Since his 2009 start, he has returned 235.1% versus 231.9% for its benchmark.
Unlike many funds with the name “value” in them, but which are basically a blend of growth and value stocks selling at a discount to expectations, this manager is a dyed-in-the-wool value stock picker.
As Sean recently explained to me in an interview, he believes two factors account for his success. First, he looks for value anywhere and everywhere in the market. In fact, he uses three different valuation metrics to try to pinpoint stocks selling for less than their worth—an approach I doubt very few of his contemporaries employ.
Second, he keeps a tightly-focused portfolio that has between 80 and 100 stocks, so his best ideas aren’t diluted by second-tier names.
Get some shares now while volatility and fear have given you an entry price you’ll likely never see again.
Fidelity’s Top Fund #5:
Mega Cap Stock (FGRTX)
Manager, Matt Fruhan
I named Matt Fruhan of my favorite large-cap fund my “2016 Manager of the Year”.
I still love the fund because it concentrates its holdings among the behemoths that sport market caps above $100 billion, so it’s perfect for an unpredictable year ahead.
Mega Cap Stock gives you all the growth (and often impressive income) of the market’s biggest names. It also gives you a shield against market corrections, because these big stocks are often where managers looking for high ground in a storm go first.
Fidelity Investor is where I first revealed the outstanding qualities of all these superior funds, and it’s where I keep you up to date on all the happenings inside Fidelity on a 24-7 basis.
Now, you probably picked up on the “X Factor” that helps me identify which Fidelity funds will outperform the market.
It’s no coincidence that this factor is also responsible for Fidelity’s #1 advantage over their competitors.
And understanding this X Factor is the foundation for my superior track record as an investment manager—capturing 201% greater returns for all those who follow my advice.
The source of their superior returns is simple, logical and unique to the Fidelity culture:
Better Fund Managers = Bigger Profits for YOU
In a sea of undistinguished funds and mediocre managers, Fidelity has “cracked the code” on finding, nurturing and empowering superior fund managers.
And those managers, in turn, give you better fund returns.
Makes sense, doesn’t it?
Fidelity has never had a year where at least half of their managers in any of their fund groups haven’t beaten the benchmark.
And most years two-thirds or more of their managers have done better than the benchmark.
Fidelity’s secret is an ultra-competitive manager hiring process unlike any other fund family on earth.
It’s almost like the “Hunger Games” of the financial world. The central idea—put talented people in constant competition to see who shines—is one that simply works.
Your journey starts with a highly competitive summer internship—well-paid, yes, but intensely competitive.
Out of your class of interns, a select few stars are invited to become junior analysts. Day and night you analyze companies to pick out the wheat from the chaff.
Succeed at that demanding role and you can advance to become an analyst or even a senior analyst. Each new rung up the ladder means the insights and ideas you’re bringing to the fund managers are better and generate higher returns.
Simply put, if you don’t add value…if your ideas don’t make money for the managers you’re pitching to…you’ll soon find yourself working elsewhere.
Now, if being an analyst is your passion, you can stay put and make a great career at Fidelity.
But if you want to become a fund manager, you’re forced to climb yet another, even more competitive mountain.
First, you compete against all the other top analysts to manage one of Fidelity’s 44 sector funds. These funds are the perfect training ground to see if you have what it takes to not just pick great stocks or bonds, but to buy and sell them at the right time, to manage risk and to seize opportunities.
Do well and you may get the chance to manage multiple sector funds.
And if you’re one of the very best sector managers, you’ll get the chance to grab at the brass ring—managing a diversified fund that invests across sectors, asset classes and countries.
And if you succeed at THAT difficult task and prove yourself a true superstar, Fidelity will even allow you to design and launch a specialized fund of your own creation.
As you can see, at every step, excellence is rewarded and mediocrity is weeded out.
It’s a brilliant system of pure meritocracy, which is no surprise when you consider it was created by Ned Johnson.
Johnson was not only the chairman of Fidelity during its period of greatest growth, he was also a talented money manager who just happened to have a better track record of managing Fidelity Magellan than Peter Lynch!
There’s only one problem:
Fidelity can’t help you pick their best funds!
That’s where I come in.
I’ve spent over three decades in the financial industry as an analyst, money manager and much more.
More importantly, for more than two decades, I’ve made knowing Fidelity inside and out my business. I worked for them for a time and used what I learned to write a top-selling book titled “What Every Fidelity Investor Needs to Know.”
Keeping tabs on such a large company is a full-time job and no one else I know puts the time in to understand what’s going on behind the scenes at Fidelity and more importantly, what it means for Fidelity investors, like we do.
And we understand one thing above all—the secret to picking the most lucrative Fidelity funds is…
Know Thy Manager!
I don’t mean to brag, but no one knows Fidelity’s managers—the good, the bad and the ugly—like me.
Despite Fidelity’s remarkable manager cultivation strategy, even those who make it to the top have flaws. There are definitely stars among the stars!
Some just do OK in bull markets but shine in bear markets, and vice-versa. Others get too focused on a single sector or spread their bets too thin to really outperform their benchmarks.
I won’t pretend to know every fund manager’s Kryptonite, but I know most of them, thanks to a research project I embarked on over 20 years ago.
You see, at the time I was frustrated by the way most analysis of funds was done. Analysts would only look at a fund’s performance and pay no attention to the manager’s effect on returns.
If a manager left and was replaced, these analysts would give all the fund’s returns to the new guy…and forget all about the old guy.
That’s why I created a unique and unprecedented way to measure fund manager effectiveness.
My system has been the feature of major stories by Barron’s and The Wall Street Journal and it’s the reason why my model portfolios crush the market averages.
I won’t try to explain all the factors that go into my manager rankings, but in a nutshell, I give the highest marks to managers than can consistently beat their benchmarks…not just have one great year that covers up a bunch of losers.
You only get a thumb’s up from me if you outperform when the going is good AND lose less than the market when the going is bad.
That’s not easy to do, and it’s why I trust so few Fidelity managers with MY money.
To make these tough calls, I look at their track records in real time, so that I can spot rising stars first and drop managers who are losing their touch before it’s too late.
Of course, I also do my own economic analysis when selecting funds because even great managers can’t overcome a fierce headwind. I took pity on 2015’s managers who were forced to own energy stocks and I still shake my head at what the poor financial sector managers in 2008-2009 had to overcome!
But mostly I rely on my ability to put together an all-star team of managers, and then get them on the field where they can play to win. I almost never second-guess their individual stock choices or sector bets.
After all, they survived the Fidelity manager and analyst gauntlet.
They compiled an outstanding track record at every step along the way.
They have the super-smart team of researchers and every quantitative tool to help analyze every decision.
And they have put in the thousands of hours of research and real-time experience to navigate the market’s twists and turns. My only decision? To determine which are the best and then put them to work for me.
And they can work for you, too, if you decide to accept my invitation to try my investment advisory service, Fidelity Investor.
If by chance you’re shaking your head and telling yourself you can figure out which managers are safe to follow, please keep reading…
Fidelity Investor Reveals Secrets that
Make You More Money
Getting you into the very best Fidelity funds run by the top Fidelity managers is the most valuable benefit of my service.
But there are dozens of other ways to boost your returns, cut your costs, lower your taxes, get into “closed” funds, and just plain simplify your life. When you join me, you’ll learn a whole host of money-making and money-saving secrets. Here are just a few of the ways I can help you navigate Fidelity more successfully:
- You’ll always know which Fidelity managers are worthy of your money. My proprietary quantitative system takes the guesswork out of investing in Fidelity. It’s been proven accurate and reliable and extremely lucrative for those who choose to follow it.
- You’ll be the first to hear about new developments at Fidelity. I was one of the first to break the news of Fidelity’s launch of ETF products and I’ve broken countless other stories in my years as a Fidelity watchdog. But more importantly…
- You’ll understand Fidelity like only an insider can. The “what” of Fidelity’s doings is important to be sure, but figuring out what to do with that knowledge about new fund launches, manager changes, new policies and rules at Fidelity is even more valuable.
- You’ll get an independent advocate for your money, someone who has your best interests in mind. I’ll show you how to navigate Fidelity’s system like a champ—understanding your statements, maneuvering around their website, using their brokerage service, requesting a loan, getting your problems resolved…in short, helping you make sure not a single dollar or minute is wasted while your money is with Fidelity.
- You’ll solve the #1 frustration of Fidelity investors. It’s just too darn big to figure out on your own! Fidelity has scores of “hidden treasures”—money market funds, ETFs, annuities, tax-free funds, index funds—but they fly under the radar. I’ll show you how the best of them can meet your needs and warn you away from the bad apples that can slow you down.
- You’ll get a guide to Fidelity’s great collection of fixed income funds. Stock funds get all the ink, but Fidelity’s bond funds are superb, too. They’re low-cost, run by some of the best managers in the industry, and I’ll steer you towards the best if income and safety are your primary investing goals.
Fidelity Investor is simply the best way to stay on top of new funds, manager changes, innovative new investing strategies at Fidelity, economic developments that change our investing strategy and more inside information than you’d ever imagine.
Each 12-16 page issue is packed with a complete review of the latest funds to buy, sell or hold, a spotlight on the hottest sectors and top-performing funds, special features like our recent breakdown of the ins and outs of bond investing at Fidelity, manager interviews, and much more.
For a Lot Less Than You Think!
You might think that it would cost hundreds of dollars a year to tap into my analysis and advice.
But you’d be wrong.
What would you say if I could help you beat the average Fidelity investor by 201%…understand Fidelity like an insider…always be invested alongside the best managers…for about $8 a month?
That’s all it costs to join Fidelity Investor and tap into all the benefits of membership that I offer to my new subscribers:
- My award-winning monthly advisory, which gives you my market outlook and analysis, breaking news, eye-opening original research, manager interviews and much more
- Weekly hotline updates to keep you up to speed on any breaking news or shifts in fund performance
- My introductory special report, Fidelity’s Finest, detailing the handful of funds you MUST own if you want to beat the performance of the average investor
- Exclusive access to my 5 model portfolios for every investing style and risk level, including the S&P500-crushing Growth Portfolio
- My specific recommendations for some of America’s largest corporations’ 401k plans
- Plus all my latest tips, strategies and advice, which can only be found at our subscriber-only website
You get all of it for just $99.95, an instant savings of more than $100 off our regular $229 rate!
3 Bonus Reports—Yours FREE!
With dozens of sector funds and ETFs to choose from at Fidelity, it’s easy to go wrong. That’s why you’ll love this special report.
It breaks down 11 terrific opportunities among the minefield of Fidelity sector choices. I can’t promise we’ll hit home runs like Fidelity Select Natural Gas did for us in 2016 (+48.5%), but every recommended fund in this report pairs a strong sector with a dynamite manager who can exploit it.
Many of Fidelity’s superstar managers are quietly piling up great returns in out-of-the-way and unglamorous corners of the market. While other investors miss out, you’ll know about them first and cash in alone.
If you’ve read this far, you know that the key to picking Fidelity’s best funds is very simple—pick the best managers! Fidelity’s unique system for developing great stock pickers is no accident—it’s a culture that rewards talent and this report breaks down all of Fidelity’s managers’ strengths and weaknesses.
As this report explains, I blend several different factors that incorporate returns, risk, volatility and more to isolate which managers are truly bringing value to the table. I also break down returns over different time periods so you can see whether a manager is on a hot streak or is actually a consistent outperformer.
My final “Fidelity Investor” ranking is the gold standard of fund manager rankings—an evaluation that has proven its accuracy and value for over 2 decades.
As much as I love Fidelity’s strengths, I couldn’t call myself truly independent if I didn’t also point out their flaws.
Like these funds. They do not belong anywhere near your portfolio and your smartest investing move now could be simply banishing them from your portfolio forever. Some funds are poorly constructed, others have misguided goals, and of course, some have managers that just aren’t cutting it.
Get rid of them before it’s too late!
Once you get your hands on all these membership benefits, you’ll wonder why you ever tried to invest in Fidelity’s funds on your own!
But if you’re still on the fence, let me offer you one final inducement:
Try Fidelity Investor Completely RISK-FREE!
As great a deal as my introductory membership offer is, I want to make sure you try my service with absolutely no reservations whatsoever.
So I’m making this offer with my personal No-Risk 100% Money-Back Guarantee.
Try Fidelity Investor for the next 30 days… read my review of every single Fidelity fund…adjust your portfolio to match my market-beating portfolios… get my monthly newsletter and follow its strategies… stay in tune with all the Fidelity developments on new managers, new funds and top performers with my weekly hotline… all at my risk.
If after 30 days of following my recommendations you’re not 100% satisfied for any reason, simply call my customer service team, and I will refund every single penny you’ve paid. All bonus reports and all issues of the newsletter are yours to keep FREE with my compliments just for giving us a try.
The Clock is Ticking—
Do it Now
One investing principle I’ve repeated to my readers countless times is that “time IN the market” is a thousand times more important that “timing the market.”
Hiring great fund managers to work for you and letting them prove their superiority year after year is simply your safest and most certain path to investment wealth.
That’s exactly the choice you have before you right now.
You can either accept my invitation and start building wealth 201% faster than the average investor… or you can go it alone.
Every day you wait is a day you miss out on greater returns and hand your portfolio over to managers who fall short of my high standards.
Editor, Fidelity Investor