If it works, clone it.
Taking a cue from itself,
will launch in January a new edition of its popular $45.9 billion
Growth & Income fund.
Fidelity closed Growth & Income to new investors last spring when its assets swelled to more than $41 billion. The fund, managed by Steven Kaye, is up 29% year to date, a tad behind the 29.9% return of the $70 billion
Vanguard Index 500 fund, which closely tracks the daily returns of the
A spokeswoman says the new fund will have the same basic investment objective as its predecessor.
Fidelity isn't yet saying who will manage
Growth & Income II
, and it won't say which stocks the fund will hold. A spokeswoman says the new fund will have the same basic investment objective as its predecessor.
The company has made copies of other popular funds. Among the copycat funds are the $389 million
Contrafund II, the $4.6 billion
Destiny II and the $18.6 billion
Historically, the offspring of closed or highly popular funds have tended to do well, either tracking their parents closely, or in some cases, besting them. (Fidelity's Contrafund and Contrafund II are bucking this trend so far, though Contrafund II has been around only three quarters.) Here's a look at some parent-child funds and their comparative returns.