Fidelity Magellan

[atomicrc11]

Hey Guys. I was wondering if anyone has an opinion on the Magellan Fund. It was recently re-opened to new investors and was thinking of putting some money into it in an IRA. Since it is in an IRA capital gains isn't an issue and for a managed fund, a 0.54% expense ratio isn't horrible. My father has owned this fund for years, but I was never able to invest since it was closed. Any opinions?

[Broken Arrow]

It's one of the better known actively managed funds out there.

The current fund manager is Harry Lange.

Here's the ticker for it.

X-ray reveals that it's a large cap growth fund for the most part. Pretty aggressive with internationals, and it's never shied away from techs.

If it fits your portfolio and if it's properly allocated and diversified relative to your risk tolerance, I say it's fine. Especially with an expense ratio of only 0.54%.

[atomicrc11]

I'd say it would fit in well then. I'm young and have 35+ years until retirement. I currently have 95% in equities and 5% of my overall retirement portfolio in bonds/cash. The underlying investments in the Magellan fund are 92% equities, 4% cash and 4% other. If I did invest, I would leave my money in the fund as long as possible, at least 10 years probably more.

[atomicrc11]

After using the xray link you provided BA, if I added Magellan, I would have the following allocations:

US Stocks: 64.12%
Foreign Stocks: 27.48%
Cash: 5.88%
Bonds: 0.72%
Other: 1.8%

So overall I would have about 92% stocks and the rest in cash/bonds/other. The overall expense ratio of all investments is 0.63%, which is pretty good. My 401k is with Fidelity, and their freedom funds for around my retirement year are 0.84%. I got out of the Freedom Fund and into individual funds with varying expense ratios to get the weighted average lower while maintaining a similar diversification of funds.

[humandraydel]

Magellan is okay I guess. It's certainly one of the most popular funds - and I'll admit, for good reason. Peter Lynch was quite a fund manager. That being said, I see no particular reason to think that the fund will significantly outperform the market. For example, the 5 year annualized return of Magellan is 12.7% and the 5 year annualized return of Vanguard Total Stock Market Index is 13.8%. Of course, 12.7% per year is great, but I prefer the less risky index funds.