By: Michael E. Martinez

The Fidelity Contrafund may possibly be the best mutual fund of all time. The fund's objective is to seek capital appreciation and invest in undervalued stocks. Also, companies with good fundamentals, as well as undervalued stocks relative to their peers are attractive to this fund.

Morningstar rates FCNTX as a five star fund (the highest rating), and has a low risk rating for the fund. The total expense ratio is 0.92%, and this is a no-load fund. It's category is a large growth fund. Keep in mind, this is a large fund with over $64 billion in management. The top holdings include but are not limited to Encana, Genentech, Google, Berkshite Hathway, Exxon Mobil and Marvel Technologies.

I would reccomend this fund for younger people as it is about 90% diversified in stocks and only 0.65% in bonds. However, FCNTX has 9.75% in cash on hand. With any fund, you should always look at the management's history. William Danoff is one of the best fund managers in the country.