Fidelity announced Monday it has eliminated the 3% sales load on five of its biggest diversified equity funds, including the Fidelity Magellan Fund. The four other funds that now have no sales load are the Fidelity Contrafund, the Fidelity Contrafund II, the Fidelity Low-Priced Stock and the Fidelity New Millennium funds.
With this move, all of Fidelitys 130 diversified equity funds are now available without a sales load. Only the firms 41 sector and industry funds carry this charge. In February, Fidelity waived the front-end load on nine international funds and announced it would temporarily forgive the charge on the Contrafund through June 30.
Fidelity also launched three value funds Monday, the Fidelity Blue Chip Value Fund, the Fidelity Advisor Value Leaders Fund and the Fidelity VIP Value Leaders Portfolio, bringing its total value offerings to 15.
Brian B. Hogan is manager of the three funds, each of which will invest in large-cap, blue chip stocks that are considered undervalued in the marketplace. The funds benchmark is the Russell 1000 Value Index.
"Identifying undervalued companies takes a dedicated and experienced research team that excels in fundamental, bottom-up investing, which is a Fidelity hallmark," said John B. McDowell, head of U.S. equities at Fidelity. "While weve long been known for our growth-fund expertise, we also have great talent on the value side of our organization."