Mr. Lowell, we are at a high school advanced mathematics class studying investments and would like to know how to build a diverse portfolio. The best way to build a diversified portfolio is to look at Fidelity Dividend Growth, that would be my core holding. A core holding is the anchor for your portfolio. It ought to be a well-diversified fund, which has a proven manager at its helm who knows how to navigate the shoals of value and growth stocks. You also don't want the core fund to take on greater than average market risk.
Beta is a fairly pure measure of market risk.
So your core fund would fall within .9 to .95 beta, which shows you that it's fairly aggressive, and it's going to correlate fairly closely with the market. At Dividend Growth, Magnum is currently underweight technology. You want your core fund to be underweight technology, but to be overweight in an area that was beaten down throughout last year and the first quarter of this year. That area is health care. Within health care I don't mean HMOs.