As a financial analyst, I’ve tracked Fidelity’s funds for years—some stand out as exceptional “buy and hold” investments. Below, I break down seven of Fidelity’s best long-term mutual funds, their strategies, historical performance, and ideal investor profiles.
Table of Contents
1. Fidelity 500 Index Fund (FXAIX)
Key Stats:
- Expense Ratio: 0.015%
- 10-Year Return: 12.3% (as of 2024)
- Category: Large-Cap Blend
Why Hold Long-Term?
FXAIX tracks the S&P 500, offering low-cost exposure to America’s top companies. With near-zero fees and consistent returns, it’s ideal for passive investors who want market-matching growth.
Performance vs. S&P 500:
| Period | FXAIX Return | S&P 500 Return |
|---|---|---|
| 5-Year | 14.1% | 14.2% |
| 10-Year | 12.3% | 12.4% |
Data as of June 2024
2. Fidelity Contrafund (FCNTX)
Key Stats:
- Expense Ratio: 0.55%
- 10-Year Return: 11.8%
- Category: Large-Cap Growth
Why Hold Long-Term?
This actively managed fund, led by Will Danoff since 1990, invests in high-growth companies like Microsoft, Meta, and Berkshire Hathaway. It has outperformed its benchmark (Russell 1000 Growth) over 20+ years.
Top Holdings (2024):
- Microsoft (MSFT)
- Apple (AAPL)
- NVIDIA (NVDA)
3. Fidelity Total Market Index Fund (FSKAX)
Key Stats:
- Expense Ratio: 0.015%
- 10-Year Return: 11.1%
- Category: Total U.S. Market
Why Hold Long-Term?
FSKAX provides complete U.S. stock market exposure (3,000+ stocks). It’s more diversified than FXAIX, including small- and mid-caps, making it a strong core holding.
Market Cap Breakdown:
- Large-Cap: 75%
- Mid-Cap: 18%
- Small-Cap: 7%
4. Fidelity Blue Chip Growth Fund (FBGRX)
Key Stats:
- Expense Ratio: 0.68%
- 10-Year Return: 14.5%
- Category: Large-Cap Growth
Why Hold Long-Term?
This fund focuses on innovative leaders (Amazon, Tesla, Alphabet). While volatile, its long-term growth potential is exceptional.
Risk vs. Reward (2014-2024):
- Best Year: +52% (2023)
- Worst Year: -22% (2022)
5. Fidelity Dividend Growth Fund (FDGFX)
Key Stats:
- Expense Ratio: 0.50%
- 10-Year Return: 10.2%
- Category: Large-Cap Value
Why Hold Long-Term?
A low-volatility fund investing in dividend-growing companies (J&J, Visa, Procter & Gamble). Ideal for retirees or conservative investors.
Dividend Growth (5-Year CAGR): 7.3%
6. Fidelity International Index Fund (FSPSX)
Key Stats:
- Expense Ratio: 0.035%
- 10-Year Return: 5.8%
- Category: Foreign Large-Cap Blend
Why Hold Long-Term?
Provides developed international exposure (Europe, Japan, Australia). Diversifies beyond U.S. stocks.
Top Country Exposure:
- Japan (22%)
- UK (15%)
- France (10%)
7. Fidelity Real Estate Investment Fund (FRESX)
Key Stats:
- Expense Ratio: 0.70%
- 10-Year Return: 7.9%
- Category: Real Estate
Why Hold Long-Term?
Invests in REITs (Prologis, American Tower), offering inflation protection and income.
Dividend Yield (2024): 3.1%
Final Thoughts: Which Funds Fit You?
| Investor Type | Best Fidelity Fund(s) |
|---|---|
| Passive Investors | FXAIX, FSKAX |
| Growth Seekers | FCNTX, FBGRX |
| Dividend Lovers | FDGFX |
| International Exposure | FSPSX |
| Real Estate/Income | FRESX |
My Take:
For most investors, FXAIX + FSPSX + FDGFX creates a diversified, low-cost portfolio. If you prefer active management, FCNTX + FBGRX offers higher growth potential (with more risk).
