7 Best Fidelity Mutual Funds to Buy and Hold

7 Best Fidelity Mutual Funds to Buy and Hold

7 Best Fidelity Mutual Funds to Buy and Hold

The inexpensive mutual funds offered by Fidelity make great starter investments.

Fidelity funds are a go-to choice for set-it-and-forget-it investors.

Mutual funds can be a great method for do-it-yourself investors to build a diverse, affordable portfolio of stocks and bonds. Few asset management companies can match the range or calibre of Fidelity Investments' mutual fund selection. Fidelity offers solutions for investors of different risk tolerances, time horizons, and goals with more than 300 funds currently accessible. Many of Fidelity's funds feature low expense ratios and no loading, transaction fees, required minimum investments, or sales charges. On the Fidelity brokerage platform, investors can simply screen, buy, and manage these funds while utilising Fidelity's resources for research and education that are unmatched in the industry. The top seven Fidelity mutual funds to buy right now are shown below.

Fidelity 500 Index Fund (ticker: FXAIX)

FXAIX, which follows the S&P 500 index, is an easy-to-use and well-liked option for many investors. FXAIX gives investors access to a 500-stock market capitalization-weighted index that captures the broad performance of the U.S. market as a whole. Even experienced investors find it challenging to outperform the S&P 500 as a benchmark, and many expensive actively managed mutual funds have consistently underperformed over extended periods. With dividends reinvested, FXAIX, which has been around since 1988, has returned an average of 10.46%. The expense ratio for the fund is 0.015%, or just $1.50 yearly for every $10,000 invested.

Expense ratio: 0.015%.

Fidelity Total Market Index Fund (FSKAX)

Despite being a strong core holding, FXAIX does not include all of the mid-and small-cap stocks that make up the U.S. stock market outside of the S&P 500. FSKAX is a superior choice for investors who want to track the investable U.S. stock market as closely as possible. The Dow Jones U.S. Total Stock Market Index, which offers a more comprehensive exposure to the performance of the total market, is replicated by this fund. However, the fund's overall performance is comparable because it is mostly comprised of the large-cap firms found in the S&P 500. FSKAX may therefore be a fantastic tax-loss harvesting companion for FXAIX.

Expense ratio: 0.015%.

Fidelity U.S. Bond Index Fund (FXNAX)

For everyone but the youngest and most risk-tolerant investors, a portion of the portfolio should be allocated to high-quality bonds. Bond holdings can assist in reducing volatility and the suffering caused by stock market crashes. FXNAX, a bond fund that tracks the Bloomberg U.S. Aggregate Bond Index, is a fantastic all-in-one option. A wide variety of bonds, including government Treasurys, investment-grade corporate bonds, agency bonds, and mortgage-backed securities, are held by the fund. U.S. Treasury bonds, which have the best credit rating, make up 42% of the fund. When interest rates rise by 1%, FXNAX, which has a tenure of 6.05 years, is predicted to lose value by 6.05%. On the other hand, FXNAX is predicted to earn 6.05% if rates drop by 1%.

Expense ratio: 0.025%.

Fidelity International Index Fund (FSPSX)

Although American markets may have performed substantially better over the past ten years, this wasn't always the case. U.S. markets had a terrible performance from 2000 to 2009, with three years of losses in a row following the burst of the dot-com boom and then a severe meltdown during the financial crisis of 2007–2009. It's a good idea for investors to think about including an allocation to overseas shares in a properly diversified portfolio. FSPSX, which follows companies from developed markets such as Japan, the U.K., France, Switzerland, Australia, Germany, Sweden, and many other nations, is a wise choice in this situation. FSPSX is a relatively accessible and inexpensive approach to index foreign stocks for a 0.035% fee ratio.

Expense ratio: 0.035%.

Fidelity Growth Allocation Fund (FRGAX)

U.S. equities, foreign stocks, and U.S. bonds make up a full "three-fund portfolio." Although investors can build this on their own with the aforementioned monies, there is a simpler method. Numerous allocation funds from Fidelity provide a whole three-fund portfolio under a single ticker. In this situation, FRGAX stands in for the growth-oriented option with a 70% to 85% stock allocation and the remaining holdings in bonds. Currently, U.S. stocks make up 51% of the fund, followed by international stocks (21%) and U.S. investment-grade bonds (28%). The fact that FRGAX is essentially a "fund of funds" makes investing easier for investors.

Expense ratio: 0.02%.

Fidelity Balanced Allocation Fund (FRYBX)

The allocation to equities in FRGAX may be too large for older individuals with lesser risk tolerance. Given that these investors frequently have goals of capital preservation, income, and modest growth, a higher allocation to bonds may be preferable. FRYBX, which aims for a lower 50% to 70% allocation to stocks, is an alternative to FRGAX. Currently, FRYBX has a well-balanced allocation of 37% U.S. equities, 15% foreign stocks, and 48% U.S. bonds. With an expenditure ratio of 0.02%, FRYBX is an extremely affordable alternative to FRGAX.

Expense ratio: 0.02%.

Fidelity Real Estate Index Fund (FSRNX)

Real estate investment trusts, or REITs, are promoted as a fundamental item in a portfolio by several investment experts, most notably Rick Ferri. REITs have typically offered good returns on investment while exhibiting fewer stock market correlations. Given that rents and property prices tend to rise during inflationary periods, they may also be resistant to inflation. As a result, when included in a portfolio, they may offer benefits for diversity. The FSRNX fund from Fidelity, which follows the MSCI US IMI Real Estate 25/25 Index, is a wise purchase at this time. This index has broad exposure to the whole real estate industry because it includes REITs from the logistics, healthcare, residential, office, retail, and other sectors.

Expense ratio: 0.07%.

7 best Fidelity mutual funds to buy and hold:

  • Fidelity 500 Index Fund (FXAIX)
  • Fidelity Total Market Index Fund (FSKAX)
  • Fidelity U.S. Bond Index Fund (FXNAX)
  • Fidelity International Index Fund (FSPSX)
  • Fidelity Growth Allocation Fund (FRGAX)
  • Fidelity Balanced Allocation Fund (FRYBX)
  • Fidelity Real Estate Index Fund (FSRNX)

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