FBALX vs. FPURX: Which One Should You Invest In?

Someone asks:

Thoughts on Fidelity Puritan Fund (FPURX) vs. Fidelity Balanced Fund (FBALX)? Looking for a fund to deposit my stock profits with less downside risk in order to capture any of my realized stock gains. Trying to find comparable funds that I can buy through Fidelity that closely resemble Vanguard’s Wellington & Wellesley brands. Wellington is roughly 65/35 equities and Wellesley approx 35/65. Any suggestions? Thank you.

FBALX vs FPURX: Fund Objective

Fidelity Balanced Fund (FBALX) is a mutual fund that invests in stocks and bonds. This fund has an allocation of 60% stocks and 40% bonds. The fund invests in large, medium, and small companies with the objective to provide long-term capital appreciation and income.

Fidelity Puritan Fund (FPURX) is a no-load mutual fund that seeks long-term capital appreciation. The fund allocates around 50% - 70% in stocks and other equity securities—the rest in bonds and debts.

FBALX vs FPURX: Expense Ratio

Both mutual funds have the same expense ratio of 0.51%.

This means that for every $1,000 you have invested, $5.10 will be used to cover the fund’s operating expenses.

FBALX vs FPURX: Top 10 Holdings

Looking at their top holdings below, we can expect tech stocks to make up a large portion of the portfolio weight for FBALX and FPURX.

Some of the top holdings include Apple Inc. (AAPL), Microsoft Corporation (MSFT), and Amazon, Inc. (AMZN).

FBALX Top 10 Holdings

COMPANY SYMBOL TOTAL NET ASSETS
Microsoft Corp. MSFT 4.85%
Apple Inc. AAPL 3.94%
Amazon Inc. AMZN 2.81%
Alphabet Inc. Cl A GOOGL 1.69%
Alphabet Inc. Cl C GOOG 1.61%
Meta Platforms Inc. FB 1.51%
NVIDIA Corp. NVDA 1.51%
Tesla Inc. TSLA 1.17%
UnitedHealth Group Inc. UNH 1.08%
Jabil Inc. JBL 0.89%

FPURX Top 10 Holdings

COMPANY SYMBOL TOTAL NET ASSETS
Alphabet Inc. Cl C GOOG 5.64%
Microsoft Corp. MSFT 4.46%
Amazon Inc. AMZN 3.34%
NVIDIA Corp. NVDA 2.50%
Apple Inc. AAPL 2.16%
Marvell Technology Inc. MRVL 1.93%
Meta Platforms Inc. FB 1.92%
UnitedHealth Group Inc. UNH 1.49%
Eli Lilly & Co. LLY 1.24%
Wells Fargo & Co. WFC 1.21%

FBALX vs FPURX: Annual Return

Funds Fidelity® Balanced Fund Fidelity® Puritan® Fund
1 month +3.04% +2.35%
3 months +6.70% +7.10%
6 months +6.42% +6.41%
1 year +18.28% +18.94%
3 years +21.67% +20.25%
5 years +15.03% +14.62%

Which is Better, FBALX vs FPURX?

In terms of asset allocation, both funds are identical to each other (Allocation–50% to 70% Equity). Their top 10 holdings also suggest that they have a similar investing strategy.

FBALX isn’t cheaper than FPURX. They both actually charge the same yearly fee. As a result, the expense ratio isn’t a factor differentiating the two.

We conclude that you only need one fund in your portfolio. Either one will suffice, as they contain a mix of stocks and bonds that provide stability and growth potential.


Community Reviews:

Brian L:

They’re both very similar products with slight differences. I think owning one or the other would be fine. In my opinion, owning both would be a duplication of effort because their asset allocation and composition are similar.

Laura S:

FSPGX is a good low-cost large growth fund. There is no need for FBALX if you’re still young.

If you are looking for fixed income + stocks, you should consider FPURX.

Speak with a Fidelity Advisor who can give you more insight on how and when the dividends pay out.