Fidelity Capital & Income
One reason people like many low-risk stocks is the income potential of high dividends. But you don’t have to get into stocks to find yield. Let Fidelity Capital & Income Fund (MUTF:FAGIX) provide income for you via corporate bonds instead. This fund has a low expense ratio of 0.76% and a very impressive 10-year return of more than 10% annually.
Manager Mark Notkin has been at the helm since 2003 and has spread around the $9.5 billion under management in high-yield investments like corporate debt — including GMAC notes yielding 8%, and Sprint (NYSE:S) bonds returning 8.75% right now.
There are risks with high-yield corporate debt, but clearly Notkin and FAGIX have navigated these waters very shrewdly.
In a growth environment, you want to be in stocks. But if the economy and the market are moving sideways, a surefire way to seek out huge returns is to seek out huge yield. That’s exactly what Fidelity Capital & Income does.