- 53% FCNTX – Fidelity Contrafund
- 38% FFFFX – Freedom Fund 2040
- 9% FOCPX – Fidelity OTC
I’d like to think that I’m financially savvy and have a good understanding of stocks and finance, that being said I’m not a genius and will likely seek financial advice from a professional. At the moment, my portfolio is down 12.5% for the year. I’ve held onto FCNTX and FFFFX for the longest, with FOCPX being my newest edition. I’m currently down 18% on that holding (bought it earlier this year). I’m young and okay with high levels of risk, I prefer aggressive growth funds. My main question is should I reduce my holdings of ffffx and put it in something like the contrafund or OTC? Am I ridiculous for holding funds with higher expense ratios? Historically these funds have done incredibly well since the 60s and the 80s, respectively. FFFFX is a decent fund yielding 9% average over the last 10 years. Whereas the contrafund has yielded 13% (doesn’t seem like much of a difference but over many years it certainly will). Am I crazy for really trying to squeeze returns? I’m risk tolerant and am not planning on needing this money for the foreseeable future. If I reduce this holding into something more risky, should I do it now immediately, now but over time, or put it into something completely different? I also feel that FFFFX is too diversified, is that a fair assessment?
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