Hoya Saxa asked in Business & FinanceInvesting · 1 decade ago

What Fidelity mutual funds can you recommened?

(keep in mind this is for an IRA)

I bought Fidelity Select Energy (FSENX) back in January of this year, and im not happy with it.

I've been looking at Fidelity Select Chemicals (FSCHX)..do you think this is a good fund for the future?

What other funds can you recommend for for mildly aggressive approach (similar to the Fid Contrafund (FCNTX)?

Thanks!

Update:

Yes, of course this (sector fund) isn't my only holding...

Yes, thanks I am well aware of asset allocation/disverifcation

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  • 1 decade ago
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    Danny, you haven't provided enough information for anyone to make a good recommendation. You've left out key elements such as:

    - What are your other holdings?

    - What % of your total portfolio are you looking to invest in this new fund?

    - How old are you?

    - What is your risk tolerance?

    Also, 9 months is not enough time to judge the quality of a fund - EVERY fund will have up years and down years. If there has been no fundamental change in management and investment philosophy, and your investing objectives have not changed, you should not "jump ship" just because a certain investing style (or sector) is currently out of favor. On the contrary, you should be rebalancing and adding MORE to your holdings, since eventually these types of investments will come back into favor. "Chasing returns" is a very common mistake that investors make, and it is a horrible way to manage your money - many studies have confirmed this.

    You should know that sector funds like FSENX and FSCHX are MUCH more aggressive than Contrafund, which is diversified (sector funds - by definition - are not diversified). Not knowing the answers to any of the above questions, I will give you a list of some of Fidelity's stock funds that you may want to consider:

    - Mid-Cap Stock (FMCSX)

    - Small-Cap Stock (FSLCX)

    - Diversified International (FDIVX)

    - Total Market Index (FSTMX)

    - Emerging Markets (FEMKX)

    Before switching funds (esp. after only 9 months!), I would highly recommend heading down to your local library or book store and picking up one or two books on investing basics (focusing on mutual funds). This stuff really isn't all that complicated, but it is VERY important to know.

    I hope that helps. Good luck!

    Source(s): Former stock broker, MBA in Finance, and 20+ years investing experience
  • 1 decade ago

    If you have to ask what funds to invest in... you should not be in sector funds.

    Sector funds are incredibly aggressive. They're excellent for the highly knowledgeable investor & nuts for anyone else. You'll make a lot of money in them & get killed by them. You won't know when to get in or out. They should also never be used for more than 10% (all of them together) of your portfolio. Do you have an "asset allocation" plan?

    Read:

    Mutual Funds For Dummies (because..... it's important you do this right)

    BTW: Asking strangers for specific funds to invest in is worse than investing in sector funds.

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