Hey, Fools!As promised, here is email #2. Background recap: I have recently switched jobs and am working for a compnay that uses Fidelity to manage its 401k plans. So, most of my fund options are from Fidelity. I am 32 (as of Monday), have about $30k sitting in an old 401k that I am trying to decide on rolling over in to the new one, and am planning on investing 10% of my income (roughly 11k each year) into this new plan.I am looking for a really aggressive portfolio and am not interested in index funds or bonds at this time. Taking those options out, here are the fund options that I have to choose from:FCNTX -- Fidelity ContrafundFDIVX -- Fidelity Diversified International FundFEQIX -- Fidelity Equity Income FundFDGRX -- Fidelity Growth Company FunFMCSX -- Fidelity Mid-Cap Stock FundRGAEX -- American Funds Groth Fund of America FundNAMAX -- Columbia Mid Cap Value Z FundRSPFX -- RS Partners FundFFFEX (Freedom Fund?)To me, it looks like these skew toward large cap growth funds, and the other options don't seem that appealing. (That said, I work in communications, and numbers were never my strong suit.) So...I'm really hoping that someone on the board has some thoughts about where I might allocate my investments. Again, goal is to be really aggressive and pay the least amount of fees.Thanks, Fools!Gina
I would do something like this:RSPFX - 20% small blendFDIVX - 30% international largeFEQIX - 25% large valueFCNTX - 25% large growthI would also caution you to not dismiss index funds too quickly. Particularly since you most likely have access to Fidelity index funds which have extremely low expense ratios. I understand your desire to be aggressive, but the expenses you're saving on in an index can make a huge difference over time. I wouldn't necessarily encourage you to do all indexing, but it wouldn't hurt you to slip an index in as part of your large-cap holdings.
Gina,If your investment horizon is out in time then you're right to takean aggressive posture. I'm also there.Its rare that I agree with SethNC, but I do agree that you might wantto keep an eye on your index funds. The managed funds in my 401Kshave been outperforming the indexed of similar style to more than pay for the higher fees but that's not been historically the general case.some other comments: FEQIX why tie your manager's hands and limit him to income producers? the 5 year 15% return isn't bad but its bound to be worse than a less constrained fund.NAMAX like the two value funds I've held as "diversification" this one has performed poorly compared to growth funds, I'd take it off the short list.RSPFX is interesting as a small cap both US and int'l It's doing miserably this year. Manager change(?) or what? So why buy any now? FFFEX has 11% bonds, I don't think you need that. This is common with these target funds: they keep too much bond.the other look as good as or better than the funds in my 401Ks,I'm jealous.Fool on, Ed.
Gina,Out of curiosity, can you post the ticker symbols of the options you didn't mention (the index and bond funds)?
Hey, Jeff!Those funds are:FTHRXFUSEXThoughts?
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