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5 Mutual Funds That Belong in Any Retirement Portfolio

Skilled management will steer your money toward a nice nest egg

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Mutual Fund #3: Fidelity Low-Priced Stock (FLPSX)

funds-retirement-funds-flpsxFidelity Low-Priced Stock (FLPSX) continues to defy gravity with assets of over $31 billion in this mid-cap blend fund. Manager Joel Tillinghast leads a team that targets stocks priced at $35 per share or less. This leads him and his associates to medium-sized firms that often fly under the radar of Wall Street and its legion of analysts.

For the most part, midcap stocks are not understood or followed as closely as large-cap household name businesses. This creates opportunity for good stock pickers such as Tillinghast, and shareholders have benefited from his leadership since 1989. The fund’s 10.5% annualized return over the past decade places it in the top 7% of its Morningstar category.

FLPSX is large, holding more than 800 stocks at present. Consumer discretionary names make up 25% of the portfolio — with technology names accounting for 19% of assets. Recently, top holdings included UnitedHealth Group (UNH), Seagate Technology (STX), Best Buy (BBY), Ross Stores (ROST) and Microsoft. You even get some exposure to foreign stocks, as 14% of the fund is in Europe presently.

Again, this is a manager that trades infrequently, with turnover of just 11% over the past year. Fidelity charges a reasonable 0.80% in expenses, or $80 for every $10,000 invested.  

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