Fidelity Low-Priced Stock Fund: Morningstar's Top Fund for Value Investors

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Fidelity Low-Priced Stock Fund: Morningstar's Top Fund for Value Investors

Morningstar Rating: 5 Stars out of 5

Average Annual Return: 11.3%

If you're looking for a low-priced stock fund that can deliver strong long-term returns, the Fidelity Low-Priced Stock Fund is a great option. This fund has a long history of outperforming its peers, and it currently has a Morningstar rating of 5 stars out of 5.

Overview of the Fidelity Low-Priced Stock Fund

The Fidelity Low-Priced Stock Fund is a large-cap value fund that invests in companies with low price-to-earnings (P/E) ratios. The fund's manager, Joel Tillinghast, has been with Fidelity since 1988 and has a long track record of success.

The fund's investment objective is to provide long-term capital appreciation. The fund invests primarily in common stocks of large-capitalization companies that are considered undervalued. The fund may also invest in real estate investment trusts (REITs) and other income-producing securities.

fidelity low priced stock fund morningstar

Performance of the Fidelity Low-Priced Stock Fund

The Fidelity Low-Priced Stock Fund has a long history of outperforming its peers. Over the past 10 years, the fund has returned an average of 11.3% per year, compared to 9.4% for the S&P 500 Index.

The fund has also outperformed its peers during different market conditions. Over the past 5 years, the fund has returned an average of 14.2% per year, compared to 11.9% for the S&P 500 Index.

Fidelity Low-Priced Stock Fund: Morningstar's Top Fund for Value Investors

Morningstar Rating

Morningstar is a leading provider of investment research and data. The company's star ratings are based on a fund's risk-adjusted return. A fund with a 5-star rating is considered to be a top performer in its category.

The Fidelity Low-Priced Stock Fund has a 5-star rating from Morningstar. This rating indicates that the fund has outperformed its peers over the long term.

Conclusion

The Fidelity Low-Priced Stock Fund is a great option for investors who are looking for a low-priced stock fund that can deliver strong long-term returns. The fund has a long history of outperforming its peers, and it currently has a Morningstar rating of 5 stars out of 5.

Investment Considerations

Here are some things to consider before investing in the Fidelity Low-Priced Stock Fund:

The fund is a large-cap value fund. This means that the fund invests primarily in large companies that are considered undervalued. Value stocks tend to be more cyclical than growth stocks, so the fund may be more volatile than some other funds.
The fund has a high expense ratio. The fund's expense ratio is 0.85%. This is higher than the average expense ratio for large-cap value funds.
The fund is not tax-efficient. The fund's distributions are not qualified dividends, which means that they are taxed at ordinary income rates.

Despite these considerations, the Fidelity Low-Priced Stock Fund is a great option for investors who are looking for a low-priced stock fund that can deliver strong long-term returns.

Overview of the Fidelity Low-Priced Stock Fund

Fidelity Low-Priced Stock Fund: Key Metrics

Metric	Value
Morningstar Rating	5 Stars out of 5
Average Annual Return	11.3%
Expense Ratio	0.85%
Assets Under Management	$11.2 billion

Fidelity Low-Priced Stock Fund: Top Holdings

Company	Ticker	Weight
Apple	AAPL	5.3%
Microsoft	MSFT	4.6%
Amazon	AMZN	4.2%
Berkshire Hathaway	BRK.A	3.8%
JPMorgan Chase	JPM	3.6%

Fidelity Low-Priced Stock Fund: Pros and Cons

Pros

Strong long-term performance. The fund has a long history of outperforming its peers.
Low price. The fund has a low expense ratio compared to other large-cap value funds.
Experienced manager. The fund is managed by Joel Tillinghast, who has a long track record of success.

Cons

Value stocks are cyclical. The fund may be more volatile than some other funds, especially during market downturns.
High expense ratio. The fund's expense ratio is higher than the average expense ratio for large-cap value funds.
Not tax-efficient. The fund's distributions are not qualified dividends, which means that they are taxed at ordinary income rates.

Frequently Asked Questions

1. What type of fund is the Fidelity Low-Priced Stock Fund?

The Fidelity Low-Priced Stock Fund is a large-cap value fund that invests in companies with low price-to-earnings (P/E) ratios.

2. Who is the manager of the Fidelity Low-Priced Stock Fund?

The fund is managed by Joel Tillinghast, who has a long track record of success.

3. What is the expense ratio of the Fidelity Low-Priced Stock Fund?

The fund's expense ratio is 0.85%.

4. What are the top holdings of the Fidelity Low-Priced Stock Fund?

The fund's top holdings include Apple, Microsoft, Amazon, Berkshire Hathaway, and JPMorgan Chase.

5. Is the Fidelity Low-Priced Stock Fund a good investment?

The Fidelity Low-Priced Stock Fund is a great option for investors who are looking for a low-priced stock fund that can deliver strong long-term returns.

6. What are the risks of investing in the Fidelity Low-Priced Stock Fund?

The fund is a large-cap value fund, which means that it may be more volatile than some other funds. The fund also has a high expense ratio, and its distributions are not qualified dividends.

7. How can I invest in the Fidelity Low-Priced Stock Fund?

You can invest in the Fidelity Low-Priced Stock Fund through Fidelity's website or by contacting a Fidelity representative.

8. What is the minimum investment for the Fidelity Low-Priced Stock Fund?

The minimum investment for the Fidelity Low-Priced Stock Fund is $2,500.