Understanding Fidelity Contrafund Price and Performance

Fidelity Contrafund is one of the largest and most successful mutual funds in the world, with over $200 billion in assets under management.

Its price and performance can be a bit confusing, especially for beginners. Fidelity Contrafund's price is influenced by the value of its holdings, which include a diverse range of stocks from various industries.

The fund's performance is typically measured by its net asset value (NAV) per share, which is calculated daily. This value is the total value of the fund's assets minus its liabilities, divided by the number of outstanding shares.

Investors can expect the fund's price to fluctuate based on market conditions, with the NAV per share changing daily.

The Fidelity Contrafund's investment strategy is centered around achieving capital appreciation by selecting good growth and value stocks that are not well recognized by the public.

William Danoff, the fund's manager since 1990, uses bottom-up fundamental analysis to identify companies poised for sustained earnings growth not reflected in their stock price.

Danoff looks for best-of-breed companies with strong free cash flows and above-average returns on capital.

Strong management teams are also a key consideration in the fund's investment decisions.

Through this approach, the Contrafund has been successful in identifying undervalued stocks that go on to deliver strong returns.

The Fidelity Contrafund has had some impressive performance over the years. As of March 31, 2022, the fund's one-year return was 9.41%.

The three-year return was a significant 19.04%, demonstrating the fund's potential for long-term growth. This is a notable achievement, especially considering the ups and downs of the market.

Breaking down the performance over five years, the fund's return was 17.83%. This shows a steady growth pattern, indicating the fund's ability to maintain its performance over time.

Here's a summary of the fund's performance as of March 31, 2022:

The Contrafund's portfolio composition is a key factor in its investment strategy. The fund's top sectors include Information Technology at 29.37%, Communications Services at 16.39%, and Financials at 15.13%.

The fund's asset allocation is heavily weighted towards these sectors, with a total allocation of 60.89% as of February 28, 2022. This is a significant portion of the fund's overall portfolio, indicating the importance of these sectors in the Contrafund's investment strategy.

The Contrafund's top holdings include Meta Platforms Class A at 9.7% and Amazon Inc. at 7.8% as of December 31, 2021. These holdings represent a significant portion of the fund's assets, with the top ten holdings accounting for 49.14% of the fund's assets.

The fund's sector allocation is as follows:

Asset Allocation is a crucial aspect of portfolio composition, as it helps investors manage risk and achieve their financial goals. By allocating assets across different asset classes, investors can create a diversified portfolio that is less susceptible to market fluctuations.

Fidelity offers a wide range of asset allocation funds, with over 25 years of delivering innovative strategies. These funds provide professionally-managed asset allocation, ongoing diversification, and access to Fidelity's research professionals.

One of the key benefits of asset allocation funds is asset class diversification, which can help manage risk and increase potential returns. Fidelity's asset allocation philosophy focuses on providing disciplined, ongoing asset allocation to help meet investors' needs for income and growth potential.

Fidelity offers a variety of asset allocation funds, including Target Date funds, which are designed to automatically adjust their asset allocation based on the investor's retirement date. For example, the Fidelity Freedom Income Fund (FFFAX) and the Fidelity Freedom 2010 Fund (FFFCX) are two Target Date funds that offer a range of asset allocation options.

Here is a list of some of Fidelity's Target Date funds:

In addition to Target Date funds, Fidelity also offers Target Date Index funds, which track a specific index, such as the S&P 500, to provide a more passive approach to asset allocation. The Fidelity Freedom Index Income Investor (FIKFX) and the Fidelity Freedom Index 2010 Investor (FKIFX) are two examples of Target Date Index funds.

By incorporating asset allocation funds into a portfolio, investors can create a more diversified and balanced investment portfolio that is better equipped to manage risk and achieve their financial goals.

Index funds are a great way to diversify your portfolio and potentially reduce fees. They seek to mimic the performance of a major U.S. equity index, such as the S&P 500 or the Russell 2000 indexes.

One of the benefits of index funds is that they generally have lower management fees compared to actively managed funds. This can save you money over time.

Index funds also tend to be more tax-efficient, meaning you'll keep more of your investment returns. Reduced portfolio turnover is another advantage, as it means less buying and selling of securities.

Fidelity has a long history of managing index funds, with over 30 years of experience. They offer a range of index funds with low or no expense ratios, making them a great option for investors.

Here are some of the benefits of Fidelity index funds:

Some of the most popular Fidelity index funds include the Fidelity ZERO Total Market Index Fund (FZROX) and the Fidelity ZERO Large Cap Index Fund (FNILX). These funds offer a low-cost way to gain exposure to the U.S. stock market.

If you're looking for international exposure, Fidelity offers index funds that track well-known international equity indexes, such as the FTSE Emerging Index or the MSCI EAFE Index.

The portfolio composition of Fidelity Contrafund is quite impressive, with its top 10 holdings representing 49.14% of the fund's assets as of December 31, 2021.

Meta Platforms Class A (META) takes the top spot with a whopping 9.7% of the fund's assets. Amazon Inc. (AMZN) comes in second with 7.8%. Microsoft Corp. (MSFT) rounds out the top three with 6.5%.

Berkshire Hathaway Class A (BRK.A) is the fourth largest holding, making up 5.9% of the fund. Apple Inc. (AAPL) follows closely behind with 3.8%. UnitedHealth Group (UNH) and Alphabet Inc. Class A (GOOGL) both hold significant positions with 3.6% and 3.4% respectively.

NVIDIA Corp. (NVDA) and Alphabet Inc. Class C (GOOG) also make the top 10 with 3.2% and 3.1% of the fund's assets. Salesforce Inc. (CRM) rounds out the list with 2.4%.

Here's a breakdown of the top 10 holdings: