Best Mutual Fund #1: Fidelity Contrafund (FCNTX)
Fidelity Contrafund (FCNTX) remains one of the best mutual funds you can own despite the growing asset base of the $73 billion fund.
William Danoff has managed this large-cap offering since 1990 and continues to master the art of growth investing. Danoff is not a momentum-driven stock picker; instead, he buys growth names that trade at reasonable prices and has a feel for uncovering solid businesses at the right price.
FCNTX has been defying critics for years who felt the large base of assets made the fund impossible to manage successfully. The fund owns more than 300 stocks, and turnover is 48% over the past year. Still, long-term investors have been rewarded over time as this fund is up 10.1% annualized over the past decade, which places it in the top 5% of its Morningstar category.
The mutual fund’s portfolio is a who’s who of solid blue chips, and skews strongly toward technology stocks (29%), while consumer discretionary names account for 20% of the portfolio. Top holdings include Google (GOOG), Berkshire Hathaway (BRK.B), Apple (AAPL), Wells Fargo (WFC) and Noble Energy (NBL).
Expenses run 0.74% annually, or $74 for every $10,000 invested.