Question

Why was the fidelity fund of 1930 was able to remain in existence until today?

Answer 1

Reason fidelity fund of 1930 was able to remain in existence until today

1. Consistent performance - Fidelity fund has consistently delivered above average performance as compared to its peers. For instance its 5-year annualized return is 9.84% which is the highest amongst its competitors

2. Reasonable expenses – Fidelity fund has one of the lowest expense ratio at 0.49% as compared to its peers at 1.03%

3. Strategy – One of the early fund mangers Edward C. Johnson II had a right strategy to not to buy blue-chip stocks but to buy stocks with growth potential.

4. Right People – One of key people in fidelity fund was Peter Lynch, who had a clear philosophy for investing such as avoided industries that he didn't understand, buying undervalued businesses at cheap valuations.

5. Trust - Fidelity Investments gained trust of millions of investors, who even during downturns and bear markets stayed invested and were eventually rewarded handsomely