Fidelity balanced fund (FBALX) versus Fidelity Puritan fund (FPURX)
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Fidelity balanced fund (FBALX) versus Fidelity Puritan fund (FPURX) Alice 09-03-2007
Posted by Alice on September 3, 2007, 1:38 pm
Fidelity balanced fund (FBALX) versus Fidelity Puritan fund (FPURX)

I am very new to the mutual fund. So, I am trying to follow the
expert's advise.

I was reading the "Mutual Fund for Dummies", which recommends the
Fidelity Purtian fund. Then, I wen to the www.fidelity.com and found
out this Fidelity balanced fund. Both of them had a similar
allocation. On the fidelity.com, I did Research > Mutual Funds >
Compare Funds

FPURX FBALX
Performance
Non-Load Adj. Returns
1 Yr 13.21 15.27
3 Yr 10.33 13.53
5 Yr 10.77 13.64
10 Year/Life 7.11 9.56


However, when I clicked the "Chart View" tab, and the chart showed
Fidelity Purtitan fund had higher return within these 10 years. Now, I
am very confused. Can't somebody kindly help me out to explain what it
is going on here? Thanks!


Posted by Mark Freeland on September 3, 2007, 3:53 pm
: quoted-printable

> However, when I clicked the "Chart View" tab, and the chart showed
> Fidelity Purtitan fund had higher return within these 10 years. Now, I
> am very confused. Can't somebody kindly help me out to explain what it
> is going on here? Thanks!

Hi Alice,

I think the problem is that the graph layout is confusing (or you're =
using a black and white screen/printer). The higher line (the turquoise =
one) is Fidelity Balanced. However, when you look at the labels for the =
lines, Puritan is listed first (but in maroon, not turquoise). Fidelity =
Balanced is listed below it, but in turquoise - so Balanced is really =
the higher, turquoise line.

Hard to say which one will do better going forward. Many people expect =
growth stocks to do better than value for awhile, and that larger cap =
stocks will do better. Fidelity Balanced leans towards growth (and =
Puritan towards balanced), but Balanced has a lot of mid cap and small =
cap stocks, while Puritan has the vast majority of its holdings in large =
and giant stocks.

Mark Freeland
BnetOnewsX@sbcglobal.net


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<DIV><FONT face=3DArial size=3D2>"Alice" =
message =
However, when I clicked the "Chart View" tab, and the chart =
showed<BR>&gt;=20
Fidelity Purtitan fund had higher return within these 10 years. Now, =
I<BR>&gt;=20
am very confused. Can't somebody kindly help me out to explain what =
it<BR>&gt;=20
is going on here?&nbsp; Thanks!</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Hi Alice,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>I think the problem is that the graph =
layout is=20
confusing (or you're using a black and white screen/printer).&nbsp; The =
higher=20
line (the turquoise one) is Fidelity Balanced.&nbsp; However, when you =
look at=20
the labels for the lines, Puritan is listed first (but in maroon, not=20
turquoise).&nbsp; Fidelity Balanced is listed below it, but in turquoise =
- so=20
Balanced is really the higher, turquoise line.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Hard to say which one will do better =
going=20
forward.&nbsp; Many people expect growth stocks to do better than value =
for=20
awhile, and that larger cap stocks will do better.&nbsp; Fidelity =
Balanced leans=20
towards growth (and Puritan towards balanced), but Balanced has a lot of =
mid cap=20
and small cap stocks, while Puritan has the vast majority of its =
holdings in=20
large and giant stocks.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Mark Freeland</FONT></DIV>
<DIV><FONT face=3DArial size=3D2><A=20
NT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV></BODY></HTML>

------=
Posted by Sandra Loosemore on September 3, 2007, 4:19 pm

> Fidelity balanced fund (FBALX) versus Fidelity Puritan fund (FPURX)
>
> I am very new to the mutual fund. So, I am trying to follow the
> expert's advise.
>
> I was reading the "Mutual Fund for Dummies", which recommends the
> Fidelity Purtian fund. Then, I wen to the www.fidelity.com and found
> out this Fidelity balanced fund. Both of them had a similar
> allocation. On the fidelity.com, I did Research > Mutual Funds >
> Compare Funds
>
> FPURX FBALX
> Performance
> Non-Load Adj. Returns
> 1 Yr 13.21 15.27
> 3 Yr 10.33 13.53
> 5 Yr 10.77 13.64
> 10 Year/Life 7.11 9.56
>
>
> However, when I clicked the "Chart View" tab, and the chart showed
> Fidelity Purtitan fund had higher return within these 10 years. Now, I
> am very confused. Can't somebody kindly help me out to explain what it
> is going on here? Thanks!

That isn't what I see -- the 10-year chart shows FBALX having higher
returns, just like the table.

That said, I would caution against making investment decisions based on
past returns. Repeat after me: past performance is no guarantee of
future returns.

You are right that both of these funds have similar asset allocations.
They also have similar asset bases and expense ratios. They're both
highly diversified (small holdings in many companies), FBALX even more
so. You probably ought to read the prospectuses and shareholder letters
to find out how their management strategies differ.

Either of these would make a fine core holding, but are you restricted to
Fidelity funds for some reason? Otherwise, if you want a balanced fund,
I'd suggest looking at OAKBX, too.

-Sandra the cynic


Posted by Alice on September 3, 2007, 5:05 pm
I have my 401k with fidelity and would like to divertify my profolio.
Why do you recommend oakbx?


> > Fidelity balanced fund (FBALX) versus Fidelity Puritan fund (FPURX)
>
> > I am very new to the mutual fund. So, I am trying to follow the
> > expert's advise.
>
> > I was reading the "Mutual Fund for Dummies", which recommends the
> > Fidelity Purtian fund. Then, I wen to thewww.fidelity.comand found
> > out this Fidelity balanced fund. Both of them had a similar
> > allocation. On the fidelity.com, I did Research > Mutual Funds >
> > Compare Funds
>
> > FPURX FBALX
> > Performance
> > Non-Load Adj. Returns
> > 1 Yr 13.21 15.27
> > 3 Yr 10.33 13.53
> > 5 Yr 10.77 13.64
> > 10 Year/Life 7.11 9.56
>
> > However, when I clicked the "Chart View" tab, and the chart showed
> > Fidelity Purtitan fund had higher return within these 10 years. Now, I
> > am very confused. Can't somebody kindly help me out to explain what it
> > is going on here? Thanks!
>
> That isn't what I see -- the 10-year chart shows FBALX having higher
> returns, just like the table.
>
> That said, I would caution against making investment decisions based on
> past returns. Repeat after me: past performance is no guarantee of
> future returns.
>
> You are right that both of these funds have similar asset allocations.
> They also have similar asset bases and expense ratios. They're both
> highly diversified (small holdings in many companies), FBALX even more
> so. You probably ought to read the prospectuses and shareholder letters
> to find out how their management strategies differ.
>
> Either of these would make a fine core holding, but are you restricted to
> Fidelity funds for some reason? Otherwise, if you want a balanced fund,
> I'd suggest looking at OAKBX, too.
>
> -Sandra the cynic- -
>
> - -



Posted by Sandra Loosemore on September 3, 2007, 9:25 pm

> I have my 401k with fidelity and would like to divertify my profolio.
> Why do you recommend oakbx?

If OAKBX isn't offered by your 401K plan, then you can't very well put
money into it that way. :-)

As to why I would choose this over either FBALX or FPURX:

* It's got a smaller asset base and is likely to remain that way.
* It's a more concentrated fund (larger pieces of fewer companies), so
it's more of a "best ideas" portfolio and less index-like.
* Current managers have been running the fund for a long time. Fidelity
is somewhat notorious for swapping managers in and out of funds all the
time.
* Oakmark is one of the best in terms of fund manager reports and
shareholder communications.

FWIW, I don't own OAKBX any more, although I formerly held it in a
401(k) plan with a past employer. This probably isn't applicable to
everyone, but since then I've increased my fixed-income allocation
generally and decided it made more sense for me to hold pure bond
funds in my 401(k) plan and equities in my other accounts, rather than
a balanced fund in any account.

-Sandra the cynic

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