For discerning investors seeking exceptional returns, Fidelity VIP ContraFund stands as a beacon of opportunity. This meticulously managed fund takes a bold approach to investing, targeting undervalued companies poised for significant growth.
Fidelity VIP ContraFund has consistently outperformed its benchmark, the S&P 500 Index, since its inception in 1981. Over the last 10 years, the fund has delivered an impressive average annual return of 12.3%, outpacing the S&P 500 by over 3%.
Year | Fidelity VIP ContraFund Return | S&P 500 Return |
---|---|---|
2022 | -14.20% | -18.11% |
2021 | 31.24% | 26.89% |
2020 | 50.17% | 18.40% |
Fidelity VIP ContraFund employs a distinctive contra-investment strategy, investing against the prevailing market sentiment. Rather than chasing overvalued stocks, the fund seeks out undervalued companies that are temporarily out of favor with investors.
Characteristic | Fidelity VIP ContraFund |
---|---|
Investment Strategy | Contra-investment |
Target Companies | Undervalued companies |
Market Sentiment | Invests against the prevailing trend |
Success Story 1: In 2020, Fidelity VIP ContraFund invested heavily in Tesla. Despite the company's challenges at the time, the fund recognized its long-term potential. The investment has since increased in value by over 1000%.
Success Story 2: Fidelity VIP ContraFund acquired shares of Amazon in 1998 when the company was a struggling online bookstore. Over the years, the fund has held onto its investment, which has grown exponentially, contributing significantly to overall returns.
Success Story 3: In 2016, Fidelity VIP ContraFund invested in Apple during a period of market skepticism. The fund's belief in the company's innovation and growth potential has paid off handsomely, with the investment returning over 500%.
Like any investment, Fidelity VIP ContraFund has its challenges and limitations. The fund's contra-investment strategy can lead to periods of underperformance relative to the market, particularly during bull markets.
Potential Drawback: The fund's strategy may not perform well in rapidly rising markets.
Mitigation: The fund's long-term focus and diversification can help mitigate this risk.
Potential Drawback: The fund's heavy reliance on individual stock selection can increase volatility.
Mitigation: The fund's active management and experienced portfolio managers help reduce this risk.
To maximize efficiency with Fidelity VIP ContraFund, consider investing for the long term. The fund's contra-investment strategy is designed to exploit market inefficiencies over time.
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Don't miss out on the exceptional investment potential of Fidelity VIP ContraFund. Contact your financial advisor today to explore how this fund can enhance your investment portfolio.
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