Fidelity® Puritan® Fund

Scorecard
4 / 5 Stars
Lipper
5 5 3 5 1
Zacks Investment Research
3 (Hold)
Standard & Poor's
5 / 5 Stars
TheStreet.com
B- (Buy)

#20 in Moderate Allocation

U.S. News evaluated 247 Moderate Allocation Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Performance

The fund has returned 19.47 percent over the past year, 10.81 percent over the past three years, 17.87 percent over the past five years, and 7.03 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date 3.1%
1 Year 19.5%
3 Years (Annualized) 10.8%
5 Years (Annualized) 17.9%
10 Years (Annualized) 7.0%

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Summary

For Fidelity Puritan, the times are certainly changing: A shift in management and strategy has put this balanced fund, or one that invests in both equities and bonds, on a new course. 

As of March 05, 2014, the fund has assets totaling $23.58 billion. Its portfolio consists primarily of equities.

Recently, the fund has moved further into the growth category under the leadership of manager Ramin Arani. Says Morningstar, "When Arani shared stock-selection picks with value skipper Steve Petersen, the fund's stock portfolio landed squarely in blend territory. Since he took full control [in 2008], though, it has landed in the growth camp--or at least very near it." This approach has helped the fund recover from the downturn, when it suffered from exposure to energy and subprime mortgages. The fund has returned 19.47 percent over the past year and 10.81 percent over the past three years.

The fund has a respectable track record. Arani came on board as a comanager in 2007, and since then the fund has experienced a number of changes. Notably, it has switched benchmarks from the Russell 3000 Value Index to the S&P 500 Index. This has accompanied the shift from Petersen's focus on attractive prices to Arani's preference for growth picks. Arani pays close attention to prices as well and is looking for stability in some areas. For example, he generally sticks close to the fund's target allocation for stocks, which according to Morningstar is 65 percent. The fund has returned 17.87 percent over the past five years and 7.03 percent over the past decade.

Investment Strategy

Management favors companies that can generate unexpected earnings growth. Apart from looking for long-term winners, Arani likes to invest in thematic groups of stocks in order to capitalize on trends. After six to 24 months, management will re-evaluate a company it buys and choose to maintain, increase, or decrease its position. The fund is diversified across market capitalizations but strongly leans toward large- and mega-cap picks. Under Arani, there is a newfound focus on growth.

Role in Portfolio

Morningstar calls it a "core" investment.

Management

The lead manager is Ramin Arani, who came to the fund from Fidelity Trend. "Arani eschews big sector bets, doesn't load up on any one stock, and while he's looking for improving earnings, he's conscious of price. He's historically gotten ahead with a bunch of smaller victories rather than one big one," according to Morningstar. George Fischer is in charge of the fund's investment-grade bonds, while Harley Lank controls below-investment-grade bonds. 

Fees

Fidelity® Puritan® Fund has an expense ratio of 0.57 percent.

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Risk

As with any fund that favors stocks, this one comes with some risks. 

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Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 3 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 3 for one year, 3 for five years, and 2 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Risk Rank, a measure of volatility, is 2 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-03-12

Morningstar gives this fund a stewardship rating of C on a scale of A to F, saying, "This fund has a lot of good things going for it on the stewardship front, including low fees and a generally attractive culture. However, other factors, including an insufficiently independent board, keep its overall grade from being higher."

Morningstar 2011-02-01

In the annual Lipper/Barron's Fund Families Survey for 2009, Fidelity ranks 26th out of 61 fund families surveyed.

Lipper 2010-02-17

Morningstar gives this fund a stewardship rating of C on a scale of A to F, saying, "This fund has a lot of good things going for it on the stewardship front, including low fees and a generally attractive culture. However, other factors, including an insufficiently independent board, keep its overall grade from being higher."

Morningstar 2011-02-01

In the annual Lipper/Barron's Fund Families Survey for 2009, Fidelity ranks 26th out of 61 fund families surveyed.

Lipper 2010-02-17