Has anyone here ever “value invested” into a mutual fund within their 401(k)?
I am not comfortable with investing 100% in the broad stock market at these valuations and am currently sitting in a short term bond fund within my 401(k).
I considered investing in Fidelity’s select energy fund as it had a lot of oil companies selling at cheap multiples, but I did not and missed the 25% run up the fund has had so far.
I am considering putting a large portion of my 401(k) into Fidelity’s select insurance portfolio (FSPCX). 25% of this fund is concentrated in Chubb and Progressive, two great insurance companies selling at decent P/E and P/B ratios. I also looked into its other top holdings and they seem to mostly be the same - there are a few with higher multiples but they are much smaller within the portfolio.
I plan to hold the investment for years to come; these businesses I perceive as ones that will continue to see growth with inflation, rising population, etc. and can see share price growth at their valuations.