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Fidelity's Large Funds Lag The Market (FMAGX, FCNTX)





I'm glad I reduced my 401(k) exposure on Contrafund earlier this year. Now it only represents 1% of my overall portfolio.

From CNN Money:

For the year through Oct. 4, Fidelity Magellan (FMAGX) has gained only 2.7 percent. That performance lags seven percentage points behind the Standard & Poor's 500 index and places the fund in the bottom 3 percent of its large-blend peer group.

Fidelity Contrafund (FCNTX) lags the S&P by 4.4 percentage points, with a 5.3 percent return. And although Contrafund still ranks in the top 20 percent of large-growth funds year to date, it plummeted to the bottom 20 percent of its category in the third quarter of this year.

Both funds are closed to new investors, but they are still available to millions of 401(k) plan participants.

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