Fidelity Funds: Balanced (FBALX), Lower Risk
Click to Enlarge Fidelity Balanced (FBALX) looks to control risk with a classic 60/40 mix of stocks and bonds over time. Robert Stanksy leads a team of 10 managers here that all run a “sleeve” of this $25.5 billion fund.
The mix has been a winner over time, with the fund up an annualized 7.35% over the last 10 years. This performance lands FBALX in the top 9% of all mutual funds in the moderate allocation category.
The stock holdings within this Fidelity mutual fund fit into a large growth style, with nearly 19% of the portfolio in technology names like Apple (AAPL) and Google (GOOG). Financials like JPMorgan Chase (JPM) and Capital One Financial (COF) account for 17.5% of the fund. Between the large-cap bent and the built-in bond allocation, this fund is ideal for investors that have a desire to participate in the stock market … but in a lower-risk manner. Fidelity scores the beta on this fund at 0.67, indicating that it is estimated to be significantly less risky than the stock market as a whole.
FBALX charges 0.58% in expenses, or $58 annually for every $10,000 invested, and it requires a minimum initial investment of $2,500.