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5 Best 401k Mutual Funds for 2014

Maximize your long-term investments with these great funds

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Best Mutual Fund #2: Fidelity Low-Priced Stock (FLPSX)

best-mutual-funds-fidelity-low-priced-flpsxSpecializing in stocks that sell for under $35 per share leads Fidelity Low-Priced Stock (FLPSX) to many midcap and small-cap names. This mid-blend fund has benefited from the steady direction of long-time manager Joel Tillinghast, who has the fund up 31% YTD.

This also is a story of size. FLPSX has a very large asset base of more than $30 billion, and it also holds a large number of stocks — currently more than 800 holdings make up the portfolio. Yet turnover remains modest at just 11% annually.

Domestic stocks make up the bulk of the portfolio, but there is foreign exposure here as well, with 14% of the fund in Europe, 6% in Japan and 5% invested in Canadian firms. Current top holdings include: UnitedHealth Group (UNH), Microsoft (MSFT), Best Buy (BBY), Ross Stores (ROST) and Bed Bath & Beyond (BBBY).

FLPSX has gained an annualized 10.7% more than the last 10 years, good enough to land it in the top 7% of its Morningstar category over the long haul — certainly good enough to be considered among the best mutual funds for a 401k.

Fund expenses run a modest 0.8%.

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