Read and review commentaries written by Morningstar experts. These observations and insights are specific to Mutual Funds.
Fidelity's Behemoth Continues to Impress
Contrafund's merits are substantial.
by Robby Greengold, CFA | 2021-02-24 05:00:00
Fidelity Contrafund's FCNTX seasoned manager uses the fund's clout to its advantage and earns it a Morningstar Analyst Rating of Silver.The fund's substantial merits start with its leader. Will Danoff, manager since 1990 and the Morningstar Domestic-Stock Fund Manager of 2007, has excelled across multiple market cycles. It's a particularly impressive feat given the strategy's colossal asset base, which recently amounted to roughly $180 billion across all accounts and has long limited its flexibility. Danoff isn't a one-man show, though. He combines his own insights with Fidelity's deep analyst bench.Danoff looks for best-of-breed companies with competitive advantages, improving earnings potential, and capable leadership. He is particularly fond of founder-led firms. Relatively big helpings of companies such as Berkshire Hathaway, Fa… Full Story
Bitcoin FOMO Could Spread to More Fixed-Income Funds
It’s most likely to appear in more-aggressive strategies, so mind your manager’s approach.
by Karin Anderson | 2021-02-23 05:00:00
Bitcoin has established a beachhead in traditional mutual fund portfolios. It’s small and likely to remain so for a while because it’s volatile, not like any other asset class. Even the cryptocurrency pioneers are tiptoeing into it, and not always just to capture its wild, eye-catching gains. Bitcoin’s off-the-charts volatility, covered in this article by Morningstar portfolio strategist Amy Arnott, makes it more likely to appear as a small part of some equity or alternatives funds. It’s unlikely to spread widely in fixed-income strategies: The data from Arnott’s piece notes that bitcoin has been 24 times as volatile as the Bloomberg Barclays U.S. Aggregate Bond Index over the past three years.It’s hard to compare bitcoin to anything at this point, but consider emerging-markets currencies, which have been among the most … Full Story
Carefully consider the investment objectives, risks, charges and expenses before investing. A prospectus, obtained by calling 800-669-3900, contains this and other important information about an investment company. Read carefully before investing.
A mutual fund is not FDIC-insured, may lose value, and is not guaranteed by a bank or other financial institution.
Performance quoted represents past performance, is no guarantee of future results, and may not provide an adequate basis for evaluating the performance of the product over varying market conditions or economic cycles. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
TD Ameritrade receives remuneration from mutual fund companies, including those participating in its no-load, no-transaction-fee program, for recordkeeping, shareholder services, and other administrative and distribution services. The amount of TD Ameritrade's remuneration for these services is based in part on the amount of investments in such funds by TD Ameritrade clients. PLEASE ALSO SEE IMPORTANT ADDITIONAL FUND FEE DISCLOSURE INFORMATION
No-transaction-fee funds and other funds offered through TD Ameritrade have other fees and expenses that apply to a continued investment in the fund and are described in the prospectus.
Mutual funds, closed-end funds and exchange-traded funds are subject to market, exchange rate, political, credit, interest rate, and prepayment risks, which vary depending on the type of fund. International investments involve special risks, including currency fluctuations and political and economic instability. Asset allocation and diversification do not eliminate the risk of experiencing investment losses. Fund purchases may be subject to investment minimums, eligibility and other restrictions, as well as charges and expenses.
1You could lose money by investing in a money market fund.Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so.The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
2You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
3You could lose money by investing in a money market fund. Because the share price of the fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
Some mutual funds sold through TD Ameritrade impose a charge on the purchase of shares, called a “sales load.” An investor may be able to purchase fund shares through TD Ameritrade without paying a front-end sales load, but an investor may be charged a fee, called a “contingent deferred sales charge,” when the investor sells or redeems shares. TD Ameritrade may receive part or all of the sales load.
Some mutual funds offer reductions in front-end sales loads (“breakpoints”) for purchases over certain amounts or purchases through Letters of Intent or Rights of Accumulation. Some funds also offer waivers of those loads, often to retirement plans or charities. Such breakpoints or waivers will be as further described in the prospectus. You, as the investor, should determine and obtain any breakpoints or waivers or provide TD Ameritrade with sufficient information to assist it in obtaining them.
Most mutual funds charge 2.00% on the redemption of shares (including by exchange) held for less than a certain number of calendar days. Performance figures reported do not reflect the deduction of this fee. If reflected, the fee would reduce the performance quoted. Please refer to the fund's prospectus for redemption fee information. TD Ameritrade may also charge its own short-term redemption fee.
TD AMERITRADE RISKS OF INVESTING IN FUNDS: PLEASE READ IMPORTANT ADDITIONAL MUTUAL FUND, EXCHANGE-TRADED FUND, AND CLOSED-END FUND RISK DISCLOSURES
Research and planning tools are obtained by unaffiliated third-party sources deemed reliable by TD Ameritrade. However, TD Ameritrade does not guarantee their accuracy and completeness and makes no warranties with respect to results to be obtained from their use. The Investment Profile report is for informational purposes only.
Mutual Funds: Commentary
Commentary
Read and review commentaries written by Morningstar experts. These observations and insights are specific to Mutual Funds.
Fidelity's Behemoth Continues to Impress
Contrafund's merits are substantial.
Bitcoin FOMO Could Spread to More Fixed-Income Funds
It’s most likely to appear in more-aggressive strategies, so mind your manager’s approach.
Fidelity's Behemoth Continues to Impress
Bitcoin FOMO Could Spread to More Fixed-Income Funds
What Top Fund Managers Bought and Sold: Q4
The Case for Indexing in the Corporate Bond Market
Inside a Tough Year for Primecap
Manager Question of the Month: On the Road Again?
Managing Momentum's Risks
Morningstar Analyst Rating Activity to Kick Off 2021
Digging into Fidelity Contrafund
It Was Business as Usual for ETF Investors in January
3rd Party Research Disclosure /public-10:6:29
Market Data Disclosure