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Best Fidelity Funds for Your Retirement Savings

Kiplinger

Fidelity is home to some of the greatest stock fund managers of all time. At the top of the list is Peter Lynch, who during his tenure at Fidelity Magellan from 1977 to 1990 delivered a 29.1% annualized return. He beat out all other stock funds and bested Standard & Poor’s 500-stock index by an average of 13.5 percentage points per year. Since then, other stars have shone brightly, including Contrafund’s Will Danoff, Low-Priced Stock’s Joel Tillinghast and Growth Company fund’s Steve Wymer.

The firm’s string of famous managers may explain why 22 of its funds land on a list of the 105 most popular mutual funds in employer-sponsored retirement savings plans. We set out to identify the best funds on the list. In the case of Fidelity, there are four index funds, nine actively managed funds and nine funds in the firm’s Freedom target-date series, all of which hold a mix of actively managed funds and index funds. We focused our analysis on the actively managed funds and the Freedom target-date series, since we recently named our favorite Fidelity index funds.

We rate the nine actively managed funds and the collection of target-date funds Buy, Sell or Hold based on our analysis of the funds' performance and prospects. A Buy rating indicates the best Fidelity funds for your retirement savings from among the group of funds analyzed.

The list of funds, based on 401(k) assets under management, was generated for Kiplinger by BrightScope, a financial-information company that rates retirement-savings plans. The funds are listed in alphabetical order. We used data for the Investor share class for each fund, but your retirement plan may have access to a lower-cost share class, such as a K-class or a class called a collective investment trust (a pool of assets organized as a trust) that is run with a similar strategy to that of the mutual fund. Funds that are nominally closed to new investors may be open to participants in a 401(k) plan. Returns are as of October 17.

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