Fidelity Real Estate Investment Portfolio
Next on our list of the best fidelity index funds for you to buy is Fidelity Real Estate Investment Portfolio . If you want to add real estate to your retirement portfolio, the best-performing Fidelity real estate fund in the past decade is FRESX. The fund aims for capital growth with above-average income and a yield more than that of the S& P 500. Its managing to do that but barely, with a yield of 2.62% versus closer to 2% on S& P 500 funds like FXAIX. It invests primarily in the common stock of companies in the real estate industry or engaged in real estate investing, with the bulk being industrial and offices or residential. Over half of the portfolios assets are in its top 10 holdings, but then with only 44 companies in the entire portfolio, this isnt too surprising.
10-year average annual returns: 11.3%
Net expense ratio: 0.74%
The Best Fidelity Funds For 401 Retirement Savers
The days when successful mutual fund managers received the rock-star treatment are long gone. But when they did, many of them were busy helming the best Fidelity funds.
These days, the Boston-based firm wins attention for other parts of its business – it launched the industry’s first zero-fee index funds in 2018, for example. And yet, the firm’s lineup of actively managed mutual funds still includes a slew of standouts run by long-tenured managers.
Eighteen Fidelity funds are popular with retirement savers, according to the list of funds with the most 401 assets, provided by financial-data firm BrightScope. Seven are from the firm’s Freedom target-date fund series, four are index funds and seven are actively managed.
Here are some of the best Fidelity funds for your 401, as well as a couple popular options that don’t make the cut. We will analyze the actively managed portfolios and the Freedom target-date funds, and rate them Buy, Sell or Hold.
Rank among the top 401 funds: #50
Best for: Investors looking for an all-in-one, 60% stock, 40% bond portfolio.
Reasonable risk is part of Fidelity Balanced’s mandate. The fund achieves this by investing roughly 60% of assets in stocks, for growth, and 40% in bonds, which offer stability and income.
Fidelity Growth Strategies Fund
Next on our list of the best fidelity index funds for you to buy is Fidelity Growth Strategies Fund . Moving from the large-cap category into mid-caps now, which generally target companies with between $2 billion and $10 billion in market capitalization, FDEGX is the best-performing mid-cap fund. While it focuses on medium-sized companies, the fund may invest in small or large companies as well, provided the managers believe they offer the potential for accelerated revenue or earnings growth. FDEGX currently has more large-caps than mid-caps in its portfolio, with its top 10 holdings being well over the $10 billion market capitalization mark. That said, they arent your usual suspects. Names like Global Payments , Fiserv and KLA Corp dont make the top 10 of many large-cap funds.
10-year average annual returns: 12.08%
Net expense ratio: 0.56%
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Best Roth Ira In 2021
Fidelity Roth IRA tops the list of best Roth IRAs in 2021 for several reasons. The account offers commission-free trading for stocks, ETFs, and more than 3,400 commission-free mutual funds.
In addition to offering the best trading platform with lots of information and research on investments, investors can access a tool suite of calculators and software to help in improving their investments and achieve their retirement goals. These tools include the Fidelity Spire app and Retirement Score Calculator.
When investing in Fidelity Roth IRA, mutual funds are obviously the best investment option to take. One of Fidelitys solid mutual funds is the Fidelity 500 Index Fund which has one of the lowest expense ratios of 0.010%.
Individual stocks are the second-best Roth IRA investment. However, its necessary that you go for those with high growth potential, even though they may not work out as you expect.
Fidelity Mutual Funds For Your 401k: Fidelity Puritan Fund
Expense ratio: 0.53% per year, or $53 on a $10,000 investment
The Fidelity Puritan Fund is battle tested dozens of times over as this mutual fund has been around since 1947. What makes FPURX appealing to a wide range of investors, particularly for retirement planners, is that its whats known as a balanced fund, meaning its roster isnt confined to owning just domestic equities.
Rather, FPURX investors get exposure to international equities and fixed income asset as well, the latter of which can substantially reduce risk and volatility in turbulent markets. As of the end of January, about 95% of FPURX was allocated to domestic stocks and bonds with international equities and cash comprising the rest of the fund.
FPURX is appropriate for long-term investors, including those looking to deploy the fund within a 401k, due in part to its growth leaning on the equity side and the fact that the funds fixed income allocation tilts toward corporate bonds, including high-yield fare, which have been drubbed in the recent market slide.
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Is Buying Fidelity Bonds Right For You
Fidelity bonds are a great strategy to help you in balancing your portfolio and reducing risks through acquiring equities in your asset mix. Fixed-income assets help in ensuring that your portfolio generates income, and also lowers volatility. Mutual funds also come in handy to enhance portfolio diversification and lower the investors risks.
The only downside to buying Fidelity bonds are the risks related to interest, credit, and principal. Bond prices decline when interest rates rise and a drop in interest rates results in an increase in the bond price. In addition, bonds are rated by a third party agency which determines the creditworthiness of an issuer. The credit risk for funds that invest in below-investment-grade quality bonds tends to be higher.
Capital & Income Fund
This five-star fund can accomplish both the growth and income aspects of investing by balancing the stock and bond allocation. Stocks are close to 20% of the portfolio, and bonds make up about 80%, so the market risk is higher than with a bond fund but lower than with a stock fund. However, the long-term returns have been consistently higher than those of most bond funds. The expense ratio for FAGIX is 0.67%, and there is no minimum initial purchase.
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How Do I Choose Which Fidelity Funds To Avail
Fidelity is an incredibly successful and excellent corporation in the field of financial services. Naturally, it offers a wide variety of mutual funds, all high in quality. So when it comes to buying your own Fidelity fund, you cant help but askamong all these first-rate funds, which one shall I choose?
Well, for starters, it would be of great help if you are aware of the kind of fidelity fund that you want. We have broken down for you the three kinds of fidelity funds, categorized by the manner of long-term performance, diversity and expense ratio, and balance.
Educational Resources Trading Platforms And Market Research
Fidelity also has an extensive offering of trading platforms, research materials, and educational content. Its learning center gives you access to blogs and live webinars on relevant financial topics. And with Fidelity’s “news and research tab,” you can read up on stock market trends and real-time investment prices.
In addition to its online platform and mobile apps, Fidelity offers a trading platform specifically for its active traders: Active Trader Pro. Active Trader Pro is a downloadable platform that offers real-time trading alerts, investing insights, portfolio monitoring, customizable dashboard layouts, and option trading assistance. Though it doesn’t have a mobile version, this platform could be great for you if you want to stay on top of market movements and determine when to buy or sell securities. It also lets you place up to 50 orders at a time.
According to Fidelity’s website, the brokerage utilizes investment analysis and stock research from more than 20 independent providers, including Thomson Reuters StarMine. Fidelity also provides market insights and commentary through Fidelity Viewpoints, and it offers several retirement and investing tools.
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NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance.
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How To Make Contribution And Investment Changes
Fidelity is the Master Administrator for the Plan this means that you have the streamlined ability to enroll in the Plan and make contribution changes, whether you contribute to Fidelity, TIAA, or both. In order to contribute to TIAA, you need to have an RIT TIAA account. By offering one consolidated plan, RIT is able to avoid unnecessary fees and keep costs to employees as low as possible.
- View and/or change your contribution percentage
- View and/or change the split between your pre-tax and Roth contribution percentage
- Join the annual increase program to automatically increase your contribution each September 1
- Change your record keeper election between Fidelity and TIAA
Log in at . You can set up a login if you do not have one by clicking on “Register Now” at the top of the page and follow the prompts.
Step 1:Once logged in, click on the drop down arrow to the right of Quick Links and choose “Contribution Amount“. If you are already logged in, click on the “Contributions” tab.
Step 2:There are three choices:
- Contribution Amount – to view and change your contribution percentage and/or the split between pre-tax and after-tax Roth contributions
- Annual Increase Program – to enroll or change participation in the program to automatically increase your contribution effective each September 1
- Retirement Providers – to view and change the allocation for your future contributions between the two record keepers, Fidelity and TIAA
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How Do I Make My Fidelity Target
A target-date fund automatically shifts its holdings as time passes, and individual shareholders don’t have a say in how those adjustments happen. In other words, you can’t make a target-date fund more aggressive. Most target-date funds are designed to do the oppositebecome gradually less aggressive and more conservativeso that they fit well in retirement accounts. If you think a target-date fund isn’t aggressive enough for you, then you’ll likely need to find another fund that better matches your goals.
Fidelity Blue Chip Growth Fund
This fund is for those who aim for long-term capital growth, with 80 percent of its assets invested in blue-chip stocks.
Managed by Sonu Kalra, this fund is predicted for above-average and less volatile returns in the long run, with investors reporting positive long-term results. Over the past year, the fund has seen a return of 58.29 percent, 26.19 percent in the past three years, 22.7 percent in the past five years, and 19.13 percent in the past ten years.
Two-thirds of the funds holdings are invested in the sectors of technology and consumer cyclical sectors.
The Fidelity Blue Chip Growth Fund has a total of assets reaching almost $41.02 billions, which is invested in 422 holdings and has an expense ratio of 0.78. Investors in this fund usually hold stocks in the Dow Jones Industrial Average or blue chips, most of the time in individual retirement accounts, allowing them to make a fruitful profit.
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Best For Low Fees: Charles Schwab
The Individual 401 Plan from Charles Schwab is our top choice for low fees. The account has no opening or maintenance fees as well as no commission trades for stocks or ETFs and over 4,000 no-load, no-transaction-fee mutual funds. Customers can also use its robo-advisor, Schwab Intelligent Portfolios, with no extra fees.
Accounts are free to open and charge no recurring fees
Access to trade stocks, ETFs, and thousands of mutual funds for free
Option for a no-cost robo-advisor
No solo 401 loans
High fees for some mutual fund trades and broker-assisted trades
Charles Schwab is our top choice for low fees in a solo 401 plan. Schwabs version charges no recurring fees and no setup fees. It offers commission-free trades for all stocks and ETFs as well as over 4,200 no-transaction-fee funds on the Schwab OneSource funds list. While Schwab offers excellent customer service, be aware that automated phone trades cost $5 and broker-assisted trades cost $25 each. However, many customers could use this account without paying any fees.
Schwabs Solo 401 doesnt offer 401 loans. Its active investment platform may not satiate all expert investors, and its active charting and analysis tools lag behind some other brokerage platforms for active traders. However, the pending integration of TD Ameritrade will bring the coveted thinkorswim® platform under the Schwab umbrella, which is something active traders at Schwab can look forward to.
Human Interest: Easiest To Use Low
Human Interest was founded on a belief that many 401 companies charge excessive or hidden fees. As a disrupter to the industry, it is an investment platform that can administer your 401 plan and is great for small business owners willing to use an online provider for ease of use to save time and money.
Compared to other 401 companies, Human Interest aims to keep administrative costs down and utilizes flat administrative fees, so business owners know what to expect. While it doesnt offer payroll services in-house, it works well with most systems and provides a core group of services very efficiently.
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Monitor Your Positions And Adjust Them As Needed
Fidelity recommends that you check your portfolio mix at least once a year, or in times when your financial circumstances change significantly. For short-term trades, monitor your positions more closely, with regards to your time horizons. There is a wide range of monitoring options online and through mobile apps and alerts. Monitoring your investments should be part of your plan.
Here are some things to consider when monitoring your positions:
- Risk and return-Plan for each trade before you make it. The plan should include your required return for holding the investment. Ensure that you know what you own by researching thoroughly. Also, ensure that you monitor how well an investment is aligned with your objectives. Set alerts on factors such as news or analyst rating changes that could affect your investment.
- Portfolio impact- its also important for you to assess how a single trade can affect your overall objectives. If you have a desired asset allocation, ensure that you understand how any trading decision will affect your whole portfolio. Make use of online monitoring of your portfolio to help in evaluating your investments.
Best For Active Traders: Td Ameritrade
Most retirement-focused investors would do well to stick with a passive investment style. However, if youre into active investing, TD Ameritrade offers industry-leading platform options and tools.
Choose between multiple web, mobile, and desktop platforms
Access the advanced thinkorswim® trading platform with no added costs
Roth contributions and 401 loans are supported
Accounts will move to Charles Schwab in the future
Advanced platforms may be overwhelming for newer traders
TD Ameritrade is another renowned discount brokerage and our choice as best for active traders. It offers an individual 401 account with no recurring fees and commission-free stock and ETF trades. Its solo 401 also supports Roth contributions and 401 loans. Its standout feature for active traders, though, is the thinkorswim® active trading platform, which is available on desktop, mobile, and the web.
Before diving into other details, its important to note that this brokerage has been acquired by Charles Schwab. TD Ameritrade accounts will become Schwab accounts at some point in the future. However, as you can see from its review on this list, were fans of Schwab as well and look forward to seeing the combined capabilities once the integration is complete.
Read our full TD Ameritrade review.
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Best Fidelity Funds For Your 401k: International Growth
Manager: Jed WeissExpenses: 1.04%
Jed WeissFidelity International Growth Fund invests in companies from around the globe that he believes shows above-average potential for growth. Jed looks for multiyear structural growth stories and high-barriers-to-entry businesses at attractive valuations on his earnings forecast.
Currently, more than half of FIGFXs holdings are in Europe, though the top country representation is the United States at 20%. The U.K. follows at a 14.8% weighting, Switzerland at 13.2% and Sweden at 5.6%.
Healthcare , consumer staples and consumer discretionary are the highest-weighted sectors in the fund, reflected in top holdings such as RocheHoldings , Anheuser Busch Inbev SA and .
A couple other notes: FIGFX began trading in November 2007 and has a market value of over $700 million.