Fidelity Magrllan Fund

Table of Contents


1. Introduction and problem
2. Fidelity Magellan Fund
3. Investment Strategy
4. Fund managers
5. Markets are efficient hypothesis
6. Investment Recommendation
7. References






1. Introduction and problem

The Fidelity Magellan Fund is a U.S. mutual funds (mutual funds) and one of the most famous actively managed funds. The Fund has in the period from 1980 to 1995 provided very good performance against the S & P 500 Index and other similar funds. FMAXGs results were in contrast to conventional theories that say that in a market characterized by high competition and informasjonseffisiens, it will be difficult to outperform the market over time.

Fund managers in the fund believed in the use of fundamental analysis as a method. Fundamental analysis is to find mispriced shares on the basis of published accounts and other public information about the industry, comparable companies, etc. It may look like that Lynch, Smith, Vinik and their analytical staff was able to remove the effects of the market as other fund manager not detected or had information about. If hypotensen on markedseffensiet is correct, it would be theoretically impossible for a manager to consistently "beat the market."

Problem:
Will FMAXG able to maintain the same return in the future and be a good investment option?


2. Fidelity Magellan Fund

The Fidelity Magellan Fund (FMAGX) is one of the most famous actively managed funds. Active managed funds aims to deliver higher returns than the benchmark index (which reflects the average return in the securities markets that the fund can invest in). Passively managed funds aim to mirror the returns of a particular securities market as closely as possible, and therefore investing largely in the same securities that are part of the market index. FMAGX is defined as a growth fund. These are funds that take more risk and respond more quickly to changes in the economy than pure "income funds". When considering... [continues]

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