While wagering on individual ideas often features the highest reward potential, many turn to mutual funds such as those under Fidelity Investments for exposure to a basket of stocks. Even better, the diversity of offerings means that the company features an array of choices for nearly any investing strategy. Let’s take a look at some of the best Fidelity funds for aggressive investors.
Unlike exchange-traded funds, which are passively managed, mutual funds are actively managed, thereby leading to higher costs. Arguably, though, that’s money well spent, as it goes in part to analysts deciphering the ebb and flow of the capital markets to find potentially the most profitable opportunities.
Of course, every investment category features its pros and cons. For mutual funds, they trade only once per day, right after the markets close at 4 p.m. EST. Therefore, if you’re an aggressive investor hoping to buy or sell shares of a Fidelity fund, that will be executed at the next available net asset value.
Still, in exchange for top-quality research and management, the tradeoff could be well worth it. If you’re in the market for higher-risk opportunities, you may want to consider the best Fidelity funds for aggressive investors.
|FLGEX||Fidelity Large Cap Growth Enhanced Index Fund||$24.42|
|FMCSX||Fidelity Mid-Cap Stock Fund||$36.74|
|FSCRX||Fidelity Small Cap Discovery Fund||$23.80|
|FGRIX||Fidelity Growth & Income Portfolio||$47.06|
|FITLX||Fidelity U.S. Sustainability Index Fund||$17.21|
|FOCPX||Fidelity OTC Portfolio||$13.91|
|FIVLX||Fidelity International Value Fund||$7.86|
Fidelity Large Cap Growth Enhanced Index Fund (FLGEX)
If you’re looking for a basket of high-growth names but still desire the relative stability of large-capitalization companies, you should focus your attention on Fidelity Large Cap Growth Enhanced Index Fund (NASDAQ:FLGEX). Investing at least 80% of its assets in common stocks included in the Russell 1000 Growth Index, FLGEX features a net expense ratio of 0.39%, a favorable cost to the category average of 1.01%.
In terms of sector weighting, FLGEX is heavily biased toward the technology sector at 42.4%. Next comes consumer cyclical and communication services at 16% and 9.5%, respectively. The top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN).
On a year-to-date basis through the July 14 session, FLGEX has dropped 22%, which is below the benchmark S&P 500 index (a loss of 16% during the same period). However, if you want a mix of the biggest tech juggernauts in town, FLGEX is one of the best Fidelity funds for aggressive investors.
Fidelity Mid-Cap Stock Fund (FMCSX)
Featuring a balance between the large players and the small upstarts, the Fidelity Mid-Cap Stock Fund (NASDAQ:FMCSX) delivers a “diverse basket of domestic stocks with market capitalizations between $1 billion and $10 billion. As the very category of mid-cap suggests, these companies share some characteristics with smaller firms, and others with larger firms.”
Because of the extra analysis that goes into this fund, the FMCSX’s net expense ratio of 0.79% is noticeably higher than the aforementioned Fidelity Large Cap Growth. However, it’s also below the category average of 1.04%.
In terms of sector weightings, FMCSX concentrates heaviest on financial services at 20.4%, followed by industrials and energy at 14.3% and 12.7%, respectively.
The top individual name held is EQT Corporation (NYSE:EQT), which specializes in natural gas. First Horizon (NYSE:FHN) and Hess (NYSE:HES) round out the top three.
Fidelity Small Cap Discovery Fund (FSCRX)
For investors that really want to dial up their risk-reward profile, they can look into Fidelity Small Cap Discovery Fund (NASDAQ:FSCRX). According to its prospectus, “the fund normally invests at least 80% of assets in securities of companies with small market capitalizations,” particularly companies that would be found in the Russell 2000 or the S&P 600.
What makes FSCRX an interesting candidate among the best Fidelity funds for aggressive investors is the net expense ratio of 0.97%. For an actively managed fund in the small-cap arena, that’s a fairly solid deal. As well, the category average is 1.05%.
In terms of sector weighting, FSCRX is geared toward financial services at 16.8%, followed by industrials and technology at 15.8% and 15.6%, respectively. The healthcare sector is also up there at 13.2%.
Finally, the top holding as of this writing is Insight Enterprises (NASDAQ:NSIT), with Jones Lang LaSalle (NYSE:JLL) and Valvoline (NYSE:VVV) rounding out the top three.
Fidelity Growth & Income Portfolio (FGRIX)
One of the best Fidelity funds for aggressive investors seeking a blended investment, the Fidelity Growth & Income Portfolio (NASDAQ:FGRIX) features a “a diversified domestic equity strategy that seeks to maintain a higher dividend yield and higher earnings growth than the S&P 500 Index.” Given the devastating impact of soaring inflation on real earnings for fulltime workers, FGRIX is extremely relevant.
Even better, this fund features a very reasonable net expense ratio of 0.58%, comparing favorably to the category average of 0.97%. In terms of sector weightings, FGRIX is most biased toward financial services at 19.8%, followed by technology and industrials at 16.7% and 14.7%, respectively. Also, healthcare plays a significant role in this fund with a weighting of 14.4%.
In terms of top holdings, oil and gas giant Exxon Mobil (NYSE:XOM) leads the charge at 7.1%. Microsoft and Wells Fargo (NYSE:WFC) round out the top three at 6.1% and 5.2%, respectively.
Fidelity U.S. Sustainability Index Fund (FITLX)
Although the topic here is best Fidelity funds for aggressive investors, that doesn’t mean you can’t seek profitability while doing so responsibly. For speculators with a conscience, the Fidelity U.S. Sustainability Index Fund (NASDAQ:FITLX) provides intriguing exposure.
According to its prospectus, the “fund normally invests at least 80% of assets in securities included in the MSCI USA ESG Leaders Index, which represents the performance of stocks of large- to mid-capitalization U.S. companies with high environmental, social, and governance (ESG) performance relative to their sector peers.”
Moreover, the net expense ratio of FITLX is only 0.11%, which is very low for a mutual fund. Indeed, the category average is 0.87%.
For sector weightings, FITLX concentrates most on technology, accounting for 23.6%, followed by financial services (15.1%) and healthcare (14.5%). The top holding for the mutual fund is Microsoft at 10.7%. Electric vehicle manufacturer Tesla (NASDAQ:TSLA) and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) round out the top three (3.5% for TSLA and 3.7% for GOOGL and 3.5% for GOOG).
Fidelity OTC Portfolio (FOCPX)
To truly maximize your return potential with mutual funds, the Fidelity OTC Portfolio (NASDAQ:FOCPX) may have no equal. According to its prospectus, “the fund normally invests at least 80 percent of its portfolio in stocks traded on the Nasdaq composite index or other over-the-counter markets. Typically, more than 25 percent of the fund will be invested in the technology sector.”
As you might imagine for one of the riskier names among the best Fidelity funds for aggressive investors, FOCPX features a net expense ratio of 0.8%, which is quite high. However, it’s still below the category average of 1.01%.
In terms of sector weightings, as of this writing, FOCPX is heavily geared toward the tech sector at 39.1%. Coming in a relatively distant second is communication services at 22.5% and consumer cynical is third at 14.5%.
Interestingly, the top two individual holdings are Microsoft and Apple. However, one of its larger individual holdings is Reliance Industries, which is currently not available to trade in the U.S. market.
Fidelity International Value Fund (FIVLX)
Finally, to conclude this list of the best Fidelity funds for aggressive investors, Fidelity International Value Fund (NASDAQ:FIVLX) provides diverse exposure to international companies. While most financial advisors will recommend investors to stay closer to home and acquire shares of companies they know best, you can occasionally add some oomph to your portfolio with global entities.
You’ll want to keep in mind that the net expense ratio for FIVLX is the highest among the best Fidelity funds for aggressive investors at 1.01%. However, it’s not surprising. Since it’s dealing with international names and therefore markets, more research needs to be conducted.
The top holding in the FIVLX is energy giant Shell (NYSE:SHEL) at 3.8%, followed by BHP Group (NYSE:BHP) and TotalEnergies (NYSE:TTE). It’s fair to point out that FIVLX, despite its exposure to high-flying energy companies, is down 16% YTD. Still, that’s on par with the S&P 500. Should energy prices rise again, FIVLX could right its ship rather quickly.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.