Editor's note: This is part of a continuing series of articles looking at the 20 biggest no-load stock funds.
Compare the stock holdings of Fidelity Puritan with those of Fidelity Equity Income and you'll be hard-pressed to see differences. The similarities shouldn't come as a surprise because Equity Income's manager, Stephen Peterson, also controls the 60% or so of Puritan's assets devoted to stocks, mostly blue chips with above-average yields. George Fischer invests the rest of Puritan's assets in bonds.
Petersen's stock portfolio is chock-full of big, well-known companies, such as ExxonMobil (symbol XOM), Bank of America (BAC), and American International Group (AIG). In 2006, the fund's healthy stakes in energy, financial and telecommunications stocks helped it achieve a 15% return, four percentage points more than the average balanced fund. Lately, Petersen has been investing in technology and health care stocks, including Intel (INTC) and Johnson & Johnson (JNJ). Bond manager Fischer typically focuses on high-quality IOUs, but he dabbles in high-yield debt on occasion. At the end of 2006, about one-third of the fund's bond allocation was in junk.
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.
Puritan has outpaced the average balanced fund in nine of the past 11 years, although it has lagged Dodge & Cox Balanced, Vanguard Wellington and Fidelity Balanced over the long term. That might be because of a slightly lower allocation to stocks than its big rivals.
Puritan has beaten its in-house rival, Fidelity Balanced, in only three of the past ten years. That's partly because Puritan invests almost exclusively in the market's giants, while Balanced includes large helpings of small and midsize companies, a group that has delivered superior returns over the past few years. But Puritan's focus on large companies means the fund should thrive when those kinds of stocks rebound. Investors who like by-the-book balanced funds should BUY additional shares of Puritan. Annual expenses are 0.62% a year, much lower than the 1.07% average for balanced funds. The fund currently yields 2.8%.
FUND FACTS
Fidelity Puritan (FPURX)
- Assets: $25.8 billion
- Managers (year started): Stephen Peterson (2000); George Fischer (2004)
- Return (vs. S&P 500)*:
- One year: 13.7% (15.0%)
- Three years annualized: 8.6% (9.5%)
- Five years annualized: 8.5% (6.8%)
- Ten years annualized: 8.7% (8.4%)
- Expense ratio: 0.62%
- Portfolio turnover: 78%
- Minimum investment: $2,500
- Phone: 800-544-8544
- Web site: www.fidelity.com
*Returns through Jan. 22
Fund Fact sources: Standard & Poor's, Morningstar
View updated data for this fund and compare the performance of the 20 biggest no-load stock funds.
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
Trump's Economic InterventionThe Kiplinger Letter What to Make of Washington's Increasingly Hands-On Approach to Big Business
-
Intel Earnings Do Little to Excite Investors: What to KnowIntel stock is struggling for direction Friday after the chipmaker reported a fourth-quarter beat but gave weak guidance. Here's what Wall Street has to say.
-
Is Intel Stock a Buy, Hold or Sell After Earnings?
Intel stock is moving higher Friday after the embattled chipmaker gave upbeat Q4 guidance, but Wall Street is staying on the sidelines for now. Here's what you need to know.
-
Intel Braces for an Even Tougher Road Ahead
The Kiplinger Letter Amid a long, costly turnaround, Intel resets expectations again. Its new woes raise questions about U.S. industrial policy and global chip competition.
-
Why Your Electric Bill Will Keep ClimbingThe Kiplinger Letter There's no end in sight for energy rate hikes, so look for ways to curb your power use.
-
Smart Ways to Invest Your Money This YearFollowing a red-hot run for the equities market, folks are looking for smart ways to invest this year. Stocks, bonds and CDs all have something to offer in 2024.
-
Vanguard's New International Fund Targets Dividend GrowthInvestors may be skittish about buying international stocks, but this new Vanguard fund that targets stable dividend growers could ease their minds.
-
Best 401(k) Investments: Where to InvestKnowing where to find the best 401(k) investments to put your money can be difficult. Here, we rank 10 of the largest retirement funds.
