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Our research began by looking for Fidelity mutual funds with an average Morningstar rating of three stars or better, average or better returns, and expenses within the lowest 20%. These screens narrowed our prospects to 142 mutual funds.ย From that group, we eliminated all sector funds and those with expense ratios equal to or greater than 0.70% That reduced our list of contenders to 69 Fidelity mutual funds.
We aimed for funds that offer low fees. Some are passively managed index funds, some are top-notch actively managed funds. Our final 10 include bond funds, stock funds, and one asset allocation blend fund, which holds both stocks and bonds. The stock funds include large-cap, ESG, value, mid-cap, and a growthier Nasdaq index fund. The bond funds spanned a short term option and a broadly diversified bond index mutual fund. Investors can pick and choose from the list, to round out an existing portfolio, or create a broadly diversifiedย investment portfolio from scratch, all with these mutual funds.