Is Fidelity Contrafund (FCNTX) a Strong Mutual Fund Pick Right Now?

Having trouble finding a Large Cap Growth fund? Fidelity Contrafund (FCNTX) is a potential starting point. FCNTX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveWe classify FCNTX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.History of Fund/ManagerFidelity is responsible for FCNTX, and the company is based out of Boston, MA. The Fidelity Contrafund made its debut in May of 1967 and FCNTX has managed to accumulate roughly $140.40 billion in assets, as of the most recently available information. The fund's current manager, Will Danoff, has been in charge of the fund since September of 1990.PerformanceInvestors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 17.53%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 10.77%, which places it in the top third during this time-frame.It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. FCNTX's standard deviation over the past three years is 18.63% compared to the category average of 17.79%. The standard deviation of the fund over the past 5 years is 19.03% compared to the category average of 18.29%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 1, which means it is hypothetically as volatile as the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. FCNTX has generated a positive alpha over the past five years of 2.9, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.ExpensesFor investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FCNTX is a no load fund. It has an expense ratio of 0.64% compared to the category average of 0.95%. So, FCNTX is actually cheaper than its peers from a cost perspective.While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, Fidelity Contrafund ( FCNTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.This could just be the start of your research on FCNTXin the Large Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! 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Click to get this free report Get Your Free (FCNTX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks