Question

Many mutual fund sponsors have a large family of funds under management. One example of this is the Fidelity fund group. Go to www.fidelity.com.

Click on "Mutual Funds," right side of page under “Investment Products.”

Select “Explore our fund offering” to see a list of mutual funds offered.

Then click on "Domestic Equity" under “Fidelity Mutual Funds” in the center of the page.

On the screen before you, you will see a list of domestic equity funds.

One of the most famous (though certainly not the best) is the "Fidelity Magellan Fund (FMAGX)," so click on that.

Record the following for the Magellan fund as you scroll down the page.

1-, 3-, 5-, 10-year returns

Record the same for the "S&P Composite."

How has Magellan done against the S&P Composite?

Should investors be disappointed or pleased?

Scroll down and record the first five of the "Top 10 Holdings."

What percentage of the fund is invested in the United States? What is the "Percent Foreign Holdings?"

Write a 1-2 page summary of your findings as it relates to this learning plan.

Answer 1

The Fidelity Magellan has given average returns as follows:

• 1 year: 26.51%
• 3 years: 11.48%
• 5 years: 16.42%
• 10 years: 6%

The S&P composite has the following returns:

• 1 year: 23.33%
• 3 years: 11.97%
• 5 years: 13.47%
• 10 years: 7.89%

While in the short term (~ 1 year), the fund has beaten the index but in the long term the fund has underperformed to an extent. Thus the investors may not be very pleased with the performance.

The top five holdings are as follows:

1. APPLE INC

2.AMGEN INC

3. AMAZON.COM INC

4. JPMORGAN CHASE & CO

5. ALPHABET INC CL C

The fund is invested 95.65% in domestic equities and only 4.25% in foreign equities.

Summary:

The mutual fund has performed fairly well with a short period of better performance than the benchmark index. It is primarily invested in domestic equities with majority of holdings in high growth and established companies with good growth prospects.