Best Fidelity Mutual Funds for Long-Term Investors
Written by
Melinda Sineriz
Edited by
Joe Evans
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Fidelity is one of the largest asset managers in the U.S., known for offering a wide range of mutual funds that span stocks, bonds and blended strategies. Investors often turn to Fidelity mutual funds for active management, deep research capabilities and broad portfolio coverage, especially when building long-term retirement or taxable investment portfolios.
Not all Fidelity mutual funds serve the same purpose. Some focus on growth, others on income or capital preservation. The funds below are commonly highlighted for their long-term strategies, consistency and clear investment mandates — not short-term performance chasing.
At a Glance: Best Fidelity Mutual Funds
Fund Ticker Primary Strategy Risk Profile/Use Case One-Line Reason It Stands Out Fidelity Contrafund FCNTX Large-cap growth Medium to high Flagship actively managed growth fund Fidelity 500 Index Fund FXAIX S&P 500 index Medium Low-cost core equity exposure Fidelity Blue Chip Growth Fund FBGRX Large-cap growth Medium to high Focus on established growth leaders Fidelity Dividend Growth Fund FDGFX Dividend growth Medium Income with emphasis on sustainability Fidelity Total Market Index Fund FSKAX Total U.S. market Medium Broad diversification across U.S. stocks Fidelity Balanced Fund FBALX Stocks and bonds Medium One-fund diversified solution Strategies and expense ratios are based on current Fidelity fund disclosures.
Why Investors Choose Fidelity Mutual Funds
Fidelity combines active management and index investing under one platform, allowing investors to mix strategies easily. According to Fidelity’s own disclosures, the firm invests heavily in fundamental research, portfolio management teams and risk oversight.
The U.S. Securities and Exchange Commission notes that mutual funds allow investors to access diversified portfolios with professional management, though performance depends on strategy and market conditions.
What Is a Fidelity Mutual Fund?
A Fidelity mutual fund pools investor money to invest according to a stated objective, such as growth, income or capital preservation. Funds are priced once per day at net asset value (NAV) and are governed by prospectus disclosures.
According to the Investment Company Institute, mutual funds remain one of the most widely used investment vehicles for retirement accounts in the U.S.
Best Fidelity Mutual Funds To Watch
Fidelity Contrafund (FCNTX)
Fidelity Contrafund is one of Fidelity’s largest and longest-running actively managed funds. According to Fidelity disclosures, it focuses on large-cap companies with strong growth potential. The fund can experience periods of underperformance when growth stocks fall out of favor.
Fidelity 500 Index Fund (FXAIX)
FXAIX tracks the S&P 500 Index and provides exposure to large U.S. companies at a low cost. Fidelity reports that this fund is often used as a core holding in long-term portfolios. As an index fund, performance closely follows the broader market.
Fidelity Blue Chip Growth Fund (FBGRX)
FBGRX invests in established companies with above-average growth characteristics. According to fund disclosures, the portfolio emphasizes earnings durability and competitive positioning. Growth-oriented funds can be volatile during market corrections.
Fidelity Dividend Growth Fund (FDGFX)
FDGFX focuses on companies with the ability to grow dividends over time rather than maximize yield. Fidelity highlights dividend sustainability and cash flow strength as key selection criteria. This approach can appeal to income-focused investors seeking stability.
Fidelity Total Market Index Fund (FSKAX)
FSKAX provides exposure to the entire U.S. stock market, including small-, mid- and large-cap companies. Fidelity notes that broad diversification helps reduce reliance on any single sector. Returns generally track the overall market.
Fidelity Balanced Fund (FBALX)
FBALX combines stocks and bonds in a single fund. According to Fidelity, the fund is designed to balance growth and income with reduced volatility compared to all-equity funds. Asset allocation can shift based on market conditions.
Fidelity Mutual Funds vs. Fidelity ETFs
| Feature | Mutual Funds | ETFs |
|---|---|---|
| Trading | Once per day at NAV | Trades intraday |
| Minimum Investment | May apply | Often none |
| Management Style | Active or index | Mostly index |
| Automatic Investing | Easy | Limited |
| Tax Efficiency | Lower | Higher |
The Investment Company Institute notes that ETFs may offer tax advantages, while mutual funds provide easier automation for long-term investors.
Risks To Understand Before Investing
All mutual funds carry market risk. The SEC warns that even diversified funds can lose value during market downturns. Active funds also carry manager risk, while index funds carry full market exposure.
Expense ratios and turnover can also affect long-term returns.
How Fidelity Mutual Funds Fit Into a Portfolio
Many investors use Fidelity mutual funds as core long-term holdings, especially inside retirement accounts like IRAs and 401(k)s. Vanguard research shows that diversification and asset allocation play a larger role in outcomes than individual fund selection.
Final Take to GO
Fidelity mutual funds offer a wide range of options for investors seeking growth, income or diversification.
Index funds like FXAIX and FSKAX work well as low-cost core holdings, while actively managed funds like Contrafund and Dividend Growth can complement a diversified strategy.
The best choice depends on risk tolerance, time horizon and investment goals.
Best Fidelity Mutual Funds FAQ
- Are Fidelity mutual funds good for beginners?
- They can be, especially broad index funds that offer diversification and low costs.
- Do Fidelity mutual funds have minimum investments?
- Some Fidelity mutual funds have minimum investment requirements, though many are relatively low.
- Are Fidelity mutual funds actively managed?
- Fidelity offers both actively managed and index-based mutual funds.
- Are Fidelity mutual funds good for retirement accounts?
- They are commonly used in IRAs and employer-sponsored retirement plans.
- How are Fidelity mutual fund returns taxed?
- Taxes depend on account type and whether distributions are qualified dividends or capital gains.
John Csiszar, Daria Uhlig and Brian Hill contributed to the reporting for this article.
Data is accurate as of Jan. 27, 2026, and is subject to change.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
This article has been updated with additional reporting since its original publication.
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- Vanguard "Vanguard’s portfolio construction framework"
- SEC Investor.gov "What is Risk?"
- Fidelity "ETFs vs. mutual funds: Tax efficiency"
- SEC "MUTUAL FUNDS and ETFS: A Guide for Investors"
- The Investment Company Institute "2024 Investment Company Fact Book"
- Fidleity "Fidelity® Contrafund®"
- Fidelity "Fidelity® 500 Index Fund"
- Fidelity "Fidelity® Blue Chip Growth Fund"
- Fidelity "Fidelity® Dividend Growth Fund"
- Fidelity "Fidelity® Total Market Index Fund"
- Fidelity "Fidelity® Balanced Fund"
