Best Fidelity 3 Fund Portfolio: FZROX, FZILX, and FXNAX

Someone asks:

Hello, I’m starting up a Roth IRA on my 29th birthday and I’m thinking of starting a 3 fund portfolio. I was wondering what three funds could be used for this type of portfolio. I was thinking


Would this a good starter?


Rich O:

Personal opinion, stay away from bonds. They hinder growth. Especially at you’re age. I’m 35 and my spread is 60% FZROX, 20% FREL, and 20% FDVV.

But yes I do think you’ve got a good set up there.

JayCee S:

I was also thinking of using a combination of zero large cap and the zero extended market index funds but I don’t know if it’s better just to do FZROX to keep things simple.

Kevin O:

Thank you for the add! I’m planning on building either a dividend portfolio or a 3 fund portfolio in a taxable account. Which funds or dividend stocks do you recommend? I have FNILX and FTEC.

Brian M:

FFNOX is a four in one fund. Will give you a great diversified portfolio in just this one fund to along with what ever else you choose.

Wryne P:

I was gifted JAGTX about 2 years ago. The expense ratio (.9) seems high to me. It’s in a taxable account. I don’t plan to touch this money until I retire, which is probably 30+ years. Right now, the gains are $1.9k short and 28.5k long if I sell it. My question is: Is it wiser to go ahead and sell, realize the gains, pay the taxes, and move it something like FSKAX and FSNAX (I have a 2 fund portfolio 90/10) or just leave it and rebalance around it (I.e., count it in my 90% stocks allocation)? How do I calculate the long term implication (I.e., paying the short term taxes vs long term expense ratio cost)?

Benjamin H:

I wouldn’t sell it. I too was gifted a Tech Fund very similar to JAGTX and I haven’t sold. It has given me some serious growth over the years and I’m glad I didn’t sell. I just decided to open up a Total Market Index Fund separately and invest from the bottom up. Now I’ve got a fund that matches the market and my Tech one that usually beats it. Dave Ramsey also recommends a strategy like this too, investing in 4 types of funds, including those that historically beat the market. So far I’ve had no complaints!

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Diego, a seasoned financial analyst in New York, brings a decade of expertise to guiding financial decisions. As a blogger for, he simplifies finance, offering insights on Fidelity Investments. Beyond numbers, he explores NYC's culture and enjoys capturing moments through his photography.

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