Fidelity Low-Priced Stock Fund: A Good 401(K) Investment

The Fidelity Low-Priced Stock Fund, a charmingly named fund that focuses on the mid-cap value sector, was launched by Fidelity in 1989. Since then, Fidelity Low-Priced Stock has been one of the best mutual funds in existence, giving its fundholders a compounding rate of 13.70%. The Fidelity Low-Priced Stock Fund is one of the few mutual funds typically available to 401(k) investors in which the growth of the fund’s value provided drastic results compared to the reality of chugging in contributions month after month hoping for 5-6% capital appreciation per year and a percentage point or two from the dividend.

Specifically, the Fidelity Low-Priced Stock has turned a $10,000 investment during the December 1989 inception into $293,000 today, before deducting the substantial effect of taxes and fees (the former is mitigated heavily if you own it through a tax-advantaged account like a 401(k) and the latter can be mitigated if … Read the rest of this article!