Fidelity Growth Company Fund Morningstar Portfolio Performance and Strategy

The Fidelity Growth Company Fund is a popular investment option that has garnered significant attention from investors. This fund is managed by Fidelity Investments, a well-established financial services company.

According to Morningstar, the fund's portfolio performance has been impressive, with a 5-year annualized return of 13.5%. This is higher than the category average.

Investors can expect a mix of large and mid-cap growth stocks in the fund's portfolio, with a focus on companies with strong growth potential. The fund's strategy is to identify undervalued companies with a high growth trajectory.

The fund's expense ratio is 0.64%, which is relatively low compared to other funds in the category. This means that investors can expect to pay less in fees while still getting a solid investment performance.

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The Fidelity Growth Company fund has a Morningstar Medalist Rating of Gold, which is a testament to its exceptional performance. This fund has shown a knack for spotting and successfully investing in big winners, such as Nvidia, Shopify, and Lululemon Athletica.

The fund's process pillar is rated Above Average, which suggests that its investment strategy is sound and effective. This is likely due to the expertise of its manager, Wymer, who has a proven track record of identifying and investing in high-growth companies.

The fund's people pillar is rated High, indicating that the team behind it is experienced and skilled. This is a key factor in the fund's success, as a strong team can make all the difference in navigating the ups and downs of the market.

Wymer's willingness to take on risk and invest in profitless firms with exceptional growth potential has been a key factor in the fund's success. This approach has led to the fund's high-growth label, but it also means that it can be subject to steeper drops during market pullbacks.

Here are the key Morningstar metrics for the Fidelity Growth Company fund:

The fund's largest holding is Nvidia, which has become a significant portion of the portfolio. This is due in part to the stock's blockbuster results in 2023, which have led to a massive increase in its market value.

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The Fidelity Growth Company Fund, as rated by Morningstar, has a portfolio that's worth taking a closer look at. It invests in a mix of large- and mid-cap growth stocks, with a focus on companies in the technology, healthcare, and consumer discretionary sectors.

The fund's portfolio has a total of 245 holdings, with the top 10 holdings making up about 25% of the portfolio. These holdings include companies like Amazon, Microsoft, and Alphabet (Google).

The fund's expense ratio is 0.48%, which is relatively low compared to other funds in the large-growth category. This means that investors can expect to pay less in fees over time.

The fund's turnover rate is 87%, which is higher than the category average. This means that the fund's portfolio is being actively managed and stocks are being bought and sold more frequently.

The fund's largest sector allocation is to the technology sector, which makes up about 34% of the portfolio. This is followed by the healthcare sector, which makes up about 20% of the portfolio.

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The Fidelity Growth Company Fund (FDGRX) has a well-defined investment process, which is a key factor in its performance. This process is clearly outlined in the Morningstar article.

The fund's management team has a strong track record of delivering superior performance relative to its benchmarks and peers. High-quality management teams are a hallmark of successful investment funds.

FDGRX's parent organization, Fidelity, prioritizes its investors' interests, which is reflected in the fund's overall performance. This alignment of interests is a crucial aspect of a successful investment strategy.

FDGRX's Process Pillar rating is based on the fund's sensible, clearly defined, and repeatable performance objective and investment process. This is a key factor in its ability to deliver consistent results.

Here are the three pillars that make up FDGRX's overall rating:

Overall, FDGRX's investment strategy is built on a solid foundation of a well-defined process, strong management team, and a parent organization that prioritizes investors' interests.

Fidelity's Growth Company Fund has received top ratings from reputable sources.

Morningstar Ratings are one of the most recognized and respected ratings systems in the industry.

Funds that earn a 5-Star rating from Morningstar are considered top performers, with risk-adjusted returns that fall within the top 10% of their category peers.

To be considered a top performer, a fund must consistently deliver strong returns while managing risk.

Here are some key ratings and rankings for Fidelity's Growth Company Fund:

These ratings and rankings can give you a sense of a fund's overall performance and help you make informed investment decisions.

The Fidelity Growth Company fund has been a top performer under Wymer's leadership, with a 12.2% annualized gain since January 1997.

Its no-load share class has consistently outpaced the Russell 3000 Growth Index, which returned 9.2% over the same period.

The fund's volatility has been higher than its peers and the benchmark, as measured by standard deviation, due to its penchant for fast-growers and willingness to hold onto relatively pricey stocks.

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Despite this, the fund has typically posted benchmark-beating risk-adjusted results.

The fund's monthly rolling three-year returns have beaten the benchmark 95% of the time since Wymer took charge.

Its performance has been remarkably consistent, with nearly 95% of its three-year returns ranking in the top quartile.

In 2023, the fund's 39% return outpaced the index's 35%, thanks in part to the stellar gain of Nvidia, its largest holding.