The 7 Best Mutual Funds of 2023 (2023)

Best Fidelity Mutual Funds for August 2023

moneycost ratio
Fidelity 500 index fund (FXAIX)0,015%
Fondo Fidelity US Sustainability Index (FITLX)0,11%
Fidelity Mid Cap Index Fund (FSMDX)0,025%
Fidelity Nasdaq Composite Index Fund (FNCMX)0,30%
Fondo Fidelity Small Cap Value (FCPVX)0,99%
Fidelity Corporate Bonus Fund (FCBFX)0,44%
Overheidskas Fidelity Reserves (FDRXX)0,34%

Fidelity 500 index fund (FXAIX)

The 7 Best Mutual Funds of 2023 (1)

cost ratio

0,015%

dividend yield

1,48%

10 years M.O. annual return

12,48%

The 7 Best Mutual Funds of 2023 (2)

cost ratio

0,015%

dividend yield

1,48%

10 years M.O. annual return

12,48%

why we chose it

The Fidelity 500 index fund could be the cornerstone of a diversified investment strategyinvestment portfolio. Gives you exposure to the S&P 500, the benchmark index that generally serves as a gauge of the entire US stock market. The index tracks 500 of the largest publicly traded US companies.

FXAIX is a high-tech fund that invests around 30% of your moneyIT actions, including many of the best-known names in the industry. However, this passively managed fund still charges a very low annual fee.

The majority of FXAIX's 500 or so holdings are growth companies. Many professional managers generally consider most of their investments to be of high quality: stocks with above-average growth, with strong prospects for continuing to do so.

FXAIX is more diversified than most of its peers. The top 10 holdings account for around 30% of the fund. It has outperformed Morningstar's large-cap mix comparable group over several multi-year periods.

Fondo Fidelity US Sustainability Index (FITLX)

The 7 Best Mutual Funds of 2023 (3)

cost ratio

0,11%

dividend yield

1,23%

Average annual return since inception (May 2017)

13,32%

The 7 Best Mutual Funds of 2023 (4)

cost ratio

0,11%

dividend yield

1,23%

Average annual return since inception (May 2017)

13,32%

why we chose it

Investors looking to own companies that live up to expectationsenvironmental, social and governance metricswill be Fidelity U.S.'s low annual fee. and decent dividend yield. Sustainability Index Fund. However, due to the fund's ESG benchmark requirements, prominent companies such as Apple (AAPL), Amazon.com (AMZN) and Berkshire Hathaway (BRK.B) are not part of this fund's portfolio.

FITLX's top 10 holdings account for more than a third of the total portfolio. This increases the fund's reliance on the performance of these names. However, it is even more diversified, with around 300 total holdings. leans towardslarge cap stocks, while mid-cap stocks are the second favourite. Growth stocks have a clear preference.

Currently, the fund's preferred sector is technology, where around a quarter of its money is spent.healthcare actions, consumer discretionary and financial services are the next three favorite sectors. Shareholders looking for a fund that allows them to invest according to their values ​​while receiving competitive returns and dividend yields and paying a relatively low annual fee should consider FITLX.

Fidelity Mid Cap Index Fund (FSMDX)

The 7 Best Mutual Funds of 2023 (5)

cost ratio

0,025%

dividend yield

1,44%

Average annual return since inception (May 2017)

12,18%

The 7 Best Mutual Funds of 2023 (6)

cost ratio

0,025%

dividend yield

1,44%

Average annual return since inception (May 2017)

12,18%

why we chose it

Fidelity Mid Cap Index Fund has a Gold Star rating from Morningstar, the highest rating from the research firm. Indicates the company's confidence in FMDX's ability to outperform its competitors during a typical market cycle.

FMDX owns a mix of growth, value and core stocks, primarily inaverage head sizerange. Mid-cap stocks have a proven track record of outperforming. This is because they are smaller and more agile than their larger rivals.

The fund avoids the top 200 US stocks. With a portfolio of around 800 stocks, FSDX is quite diversified. The top 10 stocks make up only about 5% of the fund. Morningstar predicts that FMDX's earnings growth will outpace the Morningstar Category and Index over the next five years. Industrials and technology are the most important sectors of the fund. Financial services, consumer cyclical services, and healthcare are the next largest FMDXs.

Fidelity Nasdaq Composite Index Fund (FNCMX)

The 7 Best Mutual Funds of 2023 (7)

cost ratio

0,30%

dividend yield

0,64%

10 years M.O. Ana. Production performance

15,60%

The 7 Best Mutual Funds of 2023 (8)

cost ratio

0,30%

dividend yield

0,64%

10 years M.O. Ana. Production performance

15,60%

why we chose it

The Fidelity Nasdaq Composite Index Fund gives you access to more than 3,000 of the world's fastest growing stocks.Nasdaq High Tech CompositeTable of Contents. In fact, almost 50% of the fund is in information technology stocks. Big tech names Apple (AAPL), Amazon.com (AMZN), Microsoft (MSFT), Alphabet (GOOG), Tesla (TSLA) and Meta (META) are among the top 10 portfolio companies.

FNCMX's 10-year average annual return is among Fidelity's best fund choices, but the weight of technology makes it volatile. The majority of the fund's investments are large-cap stocks. Growth stocks dominate. Index membership keeps the fund's annual turnover rate low and the annual fee reasonable. It has outperformed the Morningstar category for the past decade.

If you can handle the added volatility, this fund is worth a look if you too are craving astock growth strategy.

Fondo Fidelity Small Cap Value (FCPVX)

The 7 Best Mutual Funds of 2023 (9)

cost ratio

0,99%

dividend yield

0,00%

10 years M.O. annual return

9,01%

The 7 Best Mutual Funds of 2023 (10)

cost ratio

0,99%

dividend yield

0,00%

10 years M.O. annual return

9,01%

why we chose it

The Fidelity Small Cap Value Fund offers a strategic and timely way to participate in the market. As?Small Cap StocksAs a group, they have outperformed large caps in terms of average annual returns since 1926. Additionally, value stocks often do better during bear markets and economic downturns. As a result, investors who believe that both the markets and the economy will struggle this year may want a fund like FCPVX.

And regardless of how the markets and economy perform this year, if you're an investor looking to get exposure to all corners of the market, FCPVX could be a good way to play.small cap stocklong-term. The fund selects small-cap stocks that managers say are undervalued in terms of factors such as assets, sales, earnings, growth potential or cash flow.

FCPVX has outperformed the Russell 2000 Value Index and the Morningstar Peer Group Average for several long recent periods. Note that the last time the fund paid dividends was in December 2021, so investors looking for cash flow should look elsewhere. However, this is a solid option for those looking for a small-cap fund that is actively managed by a reputable fund family.

Fidelity Corporate Bonus Fund (FCBFX)

The 7 Best Mutual Funds of 2023 (11)

cost ratio

0,44%

dividend yield

3,69%

10 years M.O. annual return

2,66%

The 7 Best Mutual Funds of 2023 (12)

cost ratio

0,44%

dividend yield

3,69%

10 years M.O. annual return

2,66%

why we chose it

Fidelity Corporate Bond Fund can occupy an important position in your portfolio. It provides diversification and hedges your stock portfolio. You can also generate cash flow.

Bond Mutual Fundsthey have their own risks. One of the most important is that as interest rates increase, the value of bonds decreases. However, after raising interest rates to a 16-year high, the US Federal Reserve has signaled that it may soon stop rate hikes. Interest rates will decline in the coming years and this will provide patient investors with capital appreciation as the fund's price rises.

FCBFX Offersfixed income investorswide variation. About 70% of the fund's more than 600 holdings come from US issuers and the rest from international issuers. More than 90% of the fund's investments are investment grade and more than 80% of the investments are rated A or BBB. Corporate bonds represent about 90% of the portfolio.

Overheidskas Fidelity Reserves (FDRXX)

The 7 Best Mutual Funds of 2023 (13)

cost ratio

0,34%

dividend yield

4.96% (return in 7 days)

10 years M.O. annual return

0,83%

The 7 Best Mutual Funds of 2023 (14)

cost ratio

0,34%

dividend yield

4.96% (return in 7 days)

10 years M.O. annual return

0,83%

why we chose it

Interest rates have skyrocketed. Currently theThe fed funds rate is 5.25% to 5.50%, following 11 rate hikes by the Federal Reserve since March 2022. Rising rates have allowed money market funds like Fidelity Government Cash Reserves to reward investors with ever-improving returns.

Meanwhile thefederal debt limit agreementit erased the small risk that FDRXX faced due to the potential risk of a Treasury default. Only about 6% of FDRXX's portfolio is made up of banknotes, coupons and strips. Instead, about 85% are repurchase agreements and floating-rate securities from government agencies. Repurchase agreements, or "repos," are essentially one- or two-day loans made to the Federal Reserve, backed by collateral and the Federal Reserve's creditworthiness. The Federal Reserve has its own money and is not subject to the Treasury's legal debt limit.

FDRXX is somewhat more conservative and stable than money market funds that focus on short-term commercial debt. Amid the uncertainty and volatility of the stock market, FDRXX can strengthen your portfolio.

*Data obtained from Morningstar Direct, current as of August 1, 2023, unless otherwise noted, such as portfolio construction from fund literature and 7-day FDRXX returns from Crane Data.

Methodology

To select the best Forbes Advisor Fidelity mutual funds from hundreds of funds on offer, we look for funds with fees of less than 0.50%, a Morningstar rating of three stars or higher, and a track record of at least ten years. From this list, we have removed funds with narrow focus and specialized asset classes or non-traditional investment strategies.

We have limited ourselves to popular asset classes that are of interest to our readers. Our list includes US equity and fixed income funds. We selected the lowest performing funds in the Morningstar category.

In our final list, we included index funds and actively managed funds. We've included funds that focus on stocks of various sizes, as well as growth, value, and major stocks. Due to the high interest rate environment, we have added a superior yielding money market fund for investors who need short-term access to their money. It also has a low minimum initial investment of $1.

We prefer funds with lower fees, with one exception. We include FCPVX, an actively managed small-cap fund. This fund offers readers a strategy to further diversify their own portfolios.

You can use this list of Fidelity mutual funds to build a well-diversified investment portfolio or expand an existing one.

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The information contained in Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be suitable for your circumstances. We do not provide financial advice, advice or brokerage services, nor do we advise or advise any person to buy or sell stocks or securities. Performance information may have changed since publication. Past performance is not an indication of future results.

Forbes Advisor adheres to strict standards of editorial integrity. To the best of our knowledge, all content is accurate as of the date of publication, although the offers contained in this document may no longer be available. The opinions expressed are solely those of the author and are not provided, endorsed or otherwise endorsed by us.collaborators.

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