Here's a way to keep the profits continuing in 2011

6 Top Fidelity Funds for Your 401(k)

As the economy continues to move slowly out of recession, investors may find it difficult to repeat the profits made in 2010 in even the best stock picks. But two decisions early this year can make it easier: maximizing your contribution to your companys 401(k) plan, and investing in funds which have the lowest possible expense ratio, which puts more of your money to work.

With that in mind, here are six proven Fidelity funds which belong in your portfolio. As youll see below, they can then be combined into two types of risk-adjusted portfolios: Aggressive Growth and Growth & Income. Each portfolio has specific benefits for younger or older plan participants, and individuals who have different risk tolerances.

Fund manager Joel Tillinghast has rarely owned fewer than 800 names in his portfolio, and often owns more than 1,000. At last count, the Fidelity Low-Priced Stock Fund had 907 holdings. Tillinghast buys stocks priced at $35 a share or less, which increases the likelihood of small- and mid-cap investments in bull markets, but in bear markets can net him companies of virtually any size.

His long-term track record has been one of solid, consistent performance, particularly when markets and economies find a bottom and begin to rebound. Average annual total returns over the last 10 years exceed 11%, almost double the performance of its Russell 2000 benchmark.  Tillinghasts top holdings come from a variety of sectors, including health care, consumer services and technology. Among his top holdings are UnitedHealth (NYSE:UNH ), Lincare Holdings (NASDAQ:LNCR ), Oracle (NASDAQ:ORCL ) and Safeway (NYSE:SWY ).

Fidelity’s Focused Stock Fund (FTQGX )

Manager Stephen DuFour invests in a concentrated portfolio of 45 stocks, which are a blend of mainly large-cap growth and value stocks. His top 10 holdings and sector weightings reveal his focus on U.S. consumer and global consumer and recovery themes. As a result, he changed the portfolio mix in late 2010 to hold more large-cap growth stocks.  As a growth investor, DuFour seeks to find great companies trading at very good prices.  More specifically, DuFour said he looks for companies which have “unit growth, they have pricing power, they have expanding margins, and they have opportunities to expand their footprint over a number of years.”  Foreign investments make up 4% of the holdings. The top three sectors are information technology (32%), industrials (22%), and consumer discretionary (12%). The top 10 holdings are Union Pacific (NYSE:UNP ), Cummins (NYSE:CMI ), Apple (NASDAQ:AAPL ), Edwards Lifesciences (NYSE:EW ), Estee Lauder (NYSE:EL ), Skyworks Solutions (NASDAQ:SWKS ), SVB Financial (NASDAQ:SIBV ), Perrigo (NASDAQ:PRGO ), Berkshire Hathaway (NYSE:BRK ), and eBay (NASDAQ:EBAY ).

Fidelity Select Healthcare (FSPHX )

Investors are always cautioned that the trend is their friend and the current national move toward health reform presents many opportunities.  This is best exemplified by Fidelity Select Healthcare, which seeks to buy funds which appreciate in price.  As the national debate on healthcare attests, this sector remain attractive for its obvious demographic tale (aging population’s increased demands) and its stealthy, low-risk, long-term growth play in the consumer sector. In 2010, the fund posted a gain of 17% vs. 16% for the S&P 500.  This $1.81 billion fund led the entire Fidelity health category.

The specialized fund is managed by Edward Yoon and its top holdings include Medco Health (NYSE:MHS ), Illumina (NASDAQ:LMIN ), Covidien (NYSE:COV ). Over the past decade, while the S&P 500 lost 7.3%, this fund gained 19.5%. Since taking over the fund in October 2008, Yoon has returned 5.8% vs. -5.1% for the S&P 500.

There’s a stealthy global market growth story here; emerging market demand for more and better healthcare is increasing while foreign stocks make up 9.7% of the holdings, but the companies that aren’t listed as foreign stocks derive increasingly greater amounts of revenue from the burgeoning global marketplace. While a few companies would be hurt by any changes in healthcare policy, the bottom line is that broader coverage provides access to bigger sales for many healthcare companies. Fidelity Select Health Care has a track record of being ahead of the sector trends, so its likely to focus on the opportunities and avoid the pitfalls in the months ahead.