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Inside the Fidelity Blue Chip Growth Fund Portfolio

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FBGRX overview

The Fidelity Blue Chip Growth Fund (FBGRX) invests “at least 80% of assets in blue chip companies (companies whose stock is included in the S&P 500 or the Dow Jones Industrial Average, and companies with market capitalizations of at least $1 billion if not included in either index).” The fund manager also invests in companies that he believes have above-average growth potential.

The fund manager makes use of fundamental analysis, which includes factors like the financial condition and industry position of each issuer, and looks at economic and market conditions while selecting securities for the portfolio.

The fund’s assets were invested across 367 holdings as of September 2016, and it was managing assets worth $19.4 billion. As of the August portfolio, its equity holdings included Salesforce.com (CRM), Visa (V), Chipotle Mexican Grill (CMG), MasterCard (MA), and Reynolds American (RAI).

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Portfolio changes in the Fidelity Blue Chip Growth Fund

FBGRX’s core sectors include information technology, consumer discretionary, and healthcare. The first two sectors make up a combined 68% of the portfolio, with the third sector being the only other forming over a tenth of the fund’s assets. The fund manager is not invested in the utilities sector, which he had exited in August 2015 itself.

FBGRX considers the Russell 1000 Growth Index as its benchmark index. Compared to that index, FBGRX is overweight the information technology, consumer discretionary, and energy sectors, whereas it’s sharply underweight industrials, materials, and telecom services.

We’ve looked at the quarterly portfolios of FBGRX for the past three years until September 2016. The tech sector was the most invested even three years ago. Right now, it comprises over 40% of the fund’s assets. The fund’s current exposure to the consumer discretionary sector is higher than three years ago but has declined a little from three months ago. Exposure to consumer staples also fallen in the past three months.

But how has FBGRX performed so far in 2016, and what can its performance be attributed to? Continue to the next article to find out.

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