Fidelity Contrafund has continued paring back its holdings of Apple, formerly the No. 1 stock held by the $92 billion mutual fund, Reuters reports. Apple is now No. 2 behind Google.
“(William) Danoff, considered to be one of the best stock pickers among mutual fund managers, has outperformed the S&P 500 by 3.3 percentage points per year over the past 15 years while running Contrafund,” Reuters notes, adding that:
“Contrafund is up 9.18 percent this year, beating 64 percent of the funds in the large-cap growth category. But the fund is trailing the 10.6 percent return on the S&P 500 index.”
Fidelity Contrafund is featured in “Fund in Focus,” which will appear in the May issue of BetterInvesting Magazine. Writer Danielle Schultz, CFP, notes that despite its name the Contrafund holds some of the most popular stocks in the marketplace:
“Fidelity Contrafund may be a worthy choice for those who have limited selections in their retirement plan offerings, those who are just beginning mutual fund investing and want some diversification internationally and those who find themselves in accord with the ideas and selections of manager Danoff,” Schultz says. “The Contrafund has performed well over a long period of time, but it’s no contrarian.”
For many Americans, investing in mutual funds is a given because of 401(k) plans in the workplace. Figuring out which fund to select is the tough part. Maybe you don ‘t want to just follow the fortunes of Apple and Google.
Beginning April 18, BetterInvesting is offering a four-part, free webinar “All About Mutual Funds.” Register and learn more here.
Contrafund remains a choice in many retirement plans.
With the 10 percent reduction of Apple shares this year, “as of a filing through Feb. 28, Contrafund had a $5.1 billion stake in Google making up 5.8% of its net assets, while a $4.6 billion position in Apple accounted for 5.2% of net assets. (Rounding out the top 5: $3.4 billion in Warren Buffett’s Berkshire Hathaway (Class A); $2.2 billion in Wells Fargo; and $2.2 billion in Coca-Cola),” Forbes reports.
BetterInvesting Magazine will be published in digital form April 18 and begin appearing in homes the week of April 22.
BetterInvesting is a national nonprofit organization that has been empowering individual investors since 1951. Founded in Detroit, the association (formerly known as National Association of Investors Corporation) was born out of the conviction that anyone can become a successful long-term investor by following commonsense investing practices. BetterInvesting has helped more than 5 million people become better, more informed investors by providing webinars, in-person events, easy-to-use online tools for analyzing stocks and mutual funds, a monthly magazine and a community of volunteers and like-minded investors. For more information about BetterInvesting, visit its website at http://www.betterinvesting.org/investing/landing/openhouse/blog/index.html or call toll free (877) 275-6242.