Fidelity Low-Priced Stock Fund
- Ticker: FLPSX
- Assets: $28.7 billion
- Category: Mid-cap stocks
- YTD Performance: 28.8% vs. 23.1% for the S&P 500
- Expense Ratio: 0.80%
One of the best Fidelity investment options out there for those looking at growth stocks is the Fidelity Low-Priced Stock Fund (FLPSX).
For the record, I am not a big advocate of shopping for “cheap’ stocks based on their nominal share price. Plenty of $5 stocks can go to $4 in a hurry, and plenty of $50 stocks can go to $60 just as fast.
But it’s undeniable that when it comes to playing the low-priced stock space, FLPSX is at the top of its game.
A half dozen managers invest the lion’s share of this fund’s cash in stocks that trade under $35 a share. Of course, over time those stocks may grow to a higher price point – which is a good thing for FLPSX investors – but the starting point is normally much cheaper.
Top holdings right now include United Health Group (UNH), Seagate Technology (STX) and Microsoft (MSFT). These three stocks that lead the Fidelity Low-Priced Stock Fund are no longer under $35, but frankly that’s a testament to the ability of these managers to pick investments that will grow.
Consumer discretionary stocks make up about 25% of the fund, and after that information technology comes in at No. 2 with about 17% of assets in this sector.