Since you're young, and it's for your 401k, which is very long term, if you can handle the occasional wide swing, you should invest in the most aggressive funds (that would be most likely 1, 3, and 5). Avoid balanced or bond funds at your young age, avoid income funds, and take a look at some of the international funds. Read the prospectus for each fund carefully before investing to make sure the fund is aggressive enough, has low expenses (below 1% of assets per year), and check its performance history.Unfortunately, no Fidelity mutual fund will ever reach Peter Lynch's legendary performance (30% per year for 14 years); the best you can hope for long-term is 20%, and more likely it will be closer to 10-15%.Most mutual fund managers (up to 80%) fail to beat the market indexes after fees and taxes are taken into account, so you might want to simply buy a no-load, low-expense S&P 500 (less volatile) index fund.Also, keep in mind that we are currently in a bull market that started at the end of 2003. You shouldn't time the market, but you also shouldn't put all your money in at one time - it's best to set a fixed amount that you invest each month, no matter if the mutual fund goes up or down, and keep doing that until you're retired.Lastly, remember - it's unlikely, for a variety of reasons, that the stock market will continue to return 10% annually in the future (as it did for most of the 20th century). 5-7% annually is more likely in the next 20-30 years, although you never know what will happen.
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