The Fidelity Low Priced Stock Fund has a stock symbol of FLPSX. The main strategy of this fund is to take a majority, around 80% of the total assets and invest it in relatively low prices stocks. These are stocks with a price at or below $35 a share. These are mainly common stocks of small to medium size companies.
The average annual return of this investment for the last year ending on February 28, 2010 under the guidance of the fund manager Joel Tilinghast was 63.95%. The volatility of this fund for the past three years under his guidance has a beta at 1.10, the R squared at 0.91 and the standard deviation of 22.11. Morningstar rates this fund with 4 stars. They consider this fund a money maker for the masses. It is an average risk with above average returns which was shown with last year’s performance.
This fund historically has its assets in the medium blend companies, but it is presently in the values category and still performing well. The magazine Forbes.com ran an article on this fund in January of 2010 and its manager. They feel his strategy is silly by believing that stocks priced under $35 can perform just as well as stocks priced over $35. The proof is in the results with an 11.1% return for the past 15 years for this mutual fund. This is nearly twice what the S&P 500 has done in the same allotment of time.
The reason this strategy works is that the less a stock is priced, the less attention it will receive. This gives them the best chance at being under priced and the greatest chance of profit. There are a total of 902 stocks in the holdings of this fund as of December 31, 2009.
As mutual funds go the Fidelity Low Priced Stock Fund is a great investment for a minimal investment amount of $2,500.
For additional resources about mutual funds and other investments from Fidelity on this website, please view Fidelity Destiny II Fund (FDETX).
If you would like to compare this fund to one of Vanguards than please try Vanguard FTSE All-World ex-US ETF on our sister site www.bestmutualfundsnow.com
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