Should You Come Back to Magellan?
Manager Harry Lange showed his stuff in 2007. If growth stocks remain in favor, his fund should shine.
Investors can now do something they haven't been able to do for a decade, except through some select retirement plans: They can buy into Fidelity Magellan, one of the most famous mutual funds ever.
Magellan, which reopened to all new investors in mid January, was the poster child of the Great Bull Market of the 1980s. Run by Peter Lynch from 1977 to 1990, it returned 27% annualized. Even after Lynch left, investors shoveled money into the fund. Assets peaked at $110 billion in 2000.
Lynch's successors had mixed results, and disillusioned investors voted with their feet. With assets now at $45 billion, Magellan (symbol FMAGX) doesn't even make our list of the 20 biggest funds.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The asset exodus could reverse course under Harry Lange, who took over Magellan in late 2005. Lange holds mainly large-company stocks with above-average earnings growth. But he will sometimes pick midsize- or small-company stocks or snoop for bargains. He also owns a chunk of foreign issues. (For Lange's views, see Magellan's Boss: Big Is Best.) Magellan stank in 2006's value-driven market. But with the revival of growth stocks in 2007, it gained 19%, beating the market by 13 points. With the wind at Lange's back, we think Magellan is worth a look. The fund's minimum is $2,500, and annual fees are a low 0.54%.
-
Stocks Chop as the Unemployment Rate Jumps: Stock Market TodayNovember job growth was stronger than expected, but sharp losses in October and a rising unemployment rate are worrying market participants.
-
Should You Renew Your CD?With rate cuts impacting earnings, we examine if now is a wise time to renew CDs.
-
7 Ways to Plan Now to Save on Medicare IRMAA Surcharges LaterUnderstand the critical two-year lookback period and why aggressive planning before you enroll in Medicare is the most effective way to minimize IRMAA.
-
Best Banks for High-Net-Worth Clientswealth management These banks welcome customers who keep high balances in deposit and investment accounts, showering them with fee breaks and access to financial-planning services.
-
Stock Market Holidays in 2025: NYSE, NASDAQ and Wall Street HolidaysMarkets When are the stock market holidays? Here, we look at which days the NYSE, Nasdaq and bond markets are off in 2025.
-
Stock Market Trading Hours: What Time Is the Stock Market Open Today?Markets When does the market open? While the stock market has regular hours, trading doesn't necessarily stop when the major exchanges close.
-
Bogleheads Stay the CourseBears and market volatility don’t scare these die-hard Vanguard investors.
-
The Current I-Bond Rate Is Mildly Attractive. Here's Why.Investing for Income The current I-bond rate is active until April 2026 and presents an attractive value, if not as attractive as in the recent past.
-
What Are I-Bonds? Inflation Made Them Popular. What Now?savings bonds Inflation has made Series I savings bonds, known as I-bonds, enormously popular with risk-averse investors. How do they work?
-
This New Sustainable ETF’s Pitch? Give Back Profits.investing Newday’s ETF partners with UNICEF and other groups.
-
As the Market Falls, New Retirees Need a Planretirement If you’re in the early stages of your retirement, you’re likely in a rough spot watching your portfolio shrink. We have some strategies to make the best of things.
