- Magellan (ticker: FMAGX) was created in 1963. Introduced to individual investors at a time when mutual funds were not a household topic, it returned strong results. In the 1980s the amount of money it managed for investors grew remarkably under manager Peter Lynch.
- Magellan invests in stocks with the primary objective of capital appreciation. Due to its increase in size, it invests predominantly in large companies and is nearly always fully invested. After being closed to new investors for more than 10 years, it is accepting new investments.
- Magellan is now one of the largest mutual funds in the world and as such tends to perform in tandem with U.S. large stock indexes such as the S&P 500 index (SPX).
- From inception, the popularity of Magellan attracted investors at a high rate, resulting in the fund once exceeding more than $100 billion in assets under management "AUM" and more than 1,200 individual stocks held within it. The overall market decline of 2008 halved the amount of AUM.
- Early in its operation, the smaller size of the fund and the quality of its portfolio managers permitted it to achieve performance greater than its peers. In recent decades it has fallen out of favor with substandard performance resulting from its large size.
- As with any equity mutual fund, shares of the fund fluctuate in value and losses can occur. Consult an investment professional for more advice.
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