Top Investment Funds for Retirement Planning through Fidelity

Leading Fidelity Investment Funds for Retirement Savings

Securing a comfortable retirement begins with smart investment decisions. Mutual funds are a preferred choice for many savers, offering diversification and professional management. Fidelity, a prominent mutual fund provider, is highly regarded for its experienced research teams and active fund management, making it ideal for retirement portfolios.

Recommended Fidelity Funds for Retirees
While Fidelity offers numerous options, some standout funds are particularly suitable for those nearing or in retirement:

Fidelity Multi-Asset Index Fund (FFNOX)
This fund emphasizes diversification by investing across seven bond index funds and Fidelity stocks. It boasts an expense ratio of 0.13%, with average annual returns of 5.03% over three years, 8.46% last year, and 12.72% YTD.

Fidelity Growth Discovery Fund (FDSVX)
Aimed at higher yields, this fund has an expense ratio of 0.67%. Its historical returns include 7.60% annually over three years, 15.61% in one year, and a 15.2% ten-year annualized return, benefiting from a stable economy and low interest rates.

Fidelity Nasdaq Composite Index Fund (FNCMX)
This fund tracks the Nasdaq Composite Index closely, with about 80% of assets in Nasdaq-listed stocks. It has an expense ratio of 0.37% and offers annual returns of 6.61% over three years, 18.37% last year, and 37.58% YTD.

Fidelity Large Cap Growth Index Fund (FSPGX)
Investing around 80% of its assets in large-cap growth stocks within the Russell 1000, this fund features an extremely low expense ratio of 0.035%. Returns are 18.53% in three years, -10.91% last year, and 13.64% YTD.

Fidelity Total Market Index Fund (FSKAX)
Covering a broad spectrum of US equities, this fund allocates 80% of assets to the Dow Jones U.S. Total Stock Market Index. Its expense ratio is just 0.015%, with annual returns of 9.07% over three years, 8.42% last year, and 19.08% YTD.

Fidelity US Sustainability Index Fund (FITLX)
Focused on ESG principles, FITLX invests in large and mid-cap companies with strong environmental, social, and governance practices. Its expense ratio is 0.11%, with annual returns of 10.63% over three years, 12.47% last year, and 22.99% YTD.

Fidelity 500 Index Fund (FXAIX)
Mimicking the S&P 500, nearly 80% of assets are invested in S&P 500 stocks. It offers a low expense ratio of 0.015% and has achieved average annual returns of 10.35% over three years, 10.14% last year, and 20.28% YTD.

Categories of Fidelity Funds
Fidelity provides various fund types tailored to different investment goals:

Domestic Equity Funds
Focused on US stocks, these funds include options like Fidelity Value Discovery and Fidelity Blue Chip Value, targeting profitable and innovative companies.

International Equity Funds
Investing outside the US, funds like Fidelity US Low Volatility and Fidelity Sustainable US Equity diversify portfolios globally.

Sector Funds
Concentrating on specific industries, these funds include technology, healthcare, and energy sectors, with options like Fidelity Large-Cap Stock Fund.

Income Funds
Focused on bonds and fixed income, these funds provide stability and income; examples are Fidelity Growth & Income and Fidelity Equity Dividend Income.

Asset Allocation Funds
Combining various asset classes such as stocks, bonds, and cash to balance risk and reward, with options like Fidelity Contrafund.

Index Funds
These passive funds track specific indices, such as the Fidelity 500 Index Fund, aiming to replicate market performance.