FCNTX vs. FBGRX: Which Fund Is Better?

In this blog post, we will be discussing two mutual funds offered by Fidelity, FCNTX and FBGRX.

We’ll take a closer look at these two funds by comparing their expense ratios, investment strategies, and performance over the years.

FCNTX vs. FBGRX: What Are the Differences?

Expense ratio:

FCNTX has a slightly higher expense ratio of 0.86%, while FBGRX is more cost-efficient with an expense ratio of 0.79%.

Portfolio composition

Another key difference between the two funds is their investment strategy. FCNTX, also known as Fidelity Contrafund, aims to identify and invest in undervalued stocks that have the potential for significant capital appreciation.

In contrast, FBGRX, or the Fidelity Blue Chip Growth Fund, focuses on investing most of its assets (80%) in well-established mid to large-cap companies with above-average growth prospects.

Performance

In terms of performance, FBGRX has clearly outperformed FCNTX in the past 5 years.

FCNTX vs. FBGRX: How Are They Similar?

Morningstar category

Morningstar has classified both funds as “Large Blend” funds. This means that they have similar compositions and invest in a mix of large-cap stocks.

Dividend schedule

Another key similarity between FCNTX and FBGRX is their dividend payouts. FBGRX distributes dividends to shareholders twice a year, in September and December. FCNTX also distributes dividends twice a year, in February and December.

Top 10 stocks

The top holdings for these mutual funds include major tech companies such as Facebook, Amazon, Microsoft, Apple, Google, Salesforce, and NVIDIA. Their exposure to the tech sector is worth noting.

Is FCNTX Still a Good Investment?

We asked our community of Fidelity investors and here’s what they have to say about FCNTX and FBGRX.

Let’s find out which fund is a better investment for your portfolio.

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Kasia K:

I can tell you I have had FCNTX for at least 10 years and my growth is 98%, nearly doubling. I bought back then and held.

John M:

FCNTX is just a managed large growth. That said, FDGRX or FBGRX if you want same exposure with better returns. I left contra years ago and haven’t looked back.

Julietta S:

I have had FCNTX for over 10 years. Don’t want to let it go just yet. But I also like FZROX!

Clayton R:

Most of the money I have been putting in has been in Contra FCNTX through the years. I have also done some trading in a few stocks but not a lot.

Mary A:

I sold a lot of shares this year to buy other things. I still have good percentage of FCNTX in my portfolio. It isn’t a huge growth fund anymore, but it is a pretty safe one.

Meg C:

FBGRX has a similar composition and returns to FCNTX. I made the switch last year because I was tired of the high fee for contra fund.

Kouichi S:

I’ve held FCNTX fund since 2009 and it absolutely sucks. Sold a bunch a few years ago to buy $AYX, $TWLO, $PD and $CRWD and I’m up so much more with those than this fund. You can do better folks!