Fidelity's Investment Strategies: Are They Worth Your Money?

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. Established in 1946, the company is one of the largest asset managers in the world, with trillions of dollars in assets under management and administration. Fidelity offers a wide range of financial products and services, including brokerage, mutual funds, investment advice, retirement services, wealth management, securities execution, and life insurance. With a focus on innovation and customer needs, Fidelity has grown to become a leading provider of investment solutions for individuals, businesses, and institutions. The company's commitment to low fees, extensive research tools, and trading platforms catering to various investor types has solidified its position as a trusted name in the investment industry.

Investment and trading services

Fidelity Investments is a multinational financial services corporation based in Boston, Massachusetts. It was established in 1946 and is one of the largest asset managers in the world, with trillions of dollars in assets under management and administration.

Fidelity offers a wide range of investment and trading services to its clients, including:

Brokerage Services

Fidelity operates a major brokerage firm, providing services to individual investors, businesses, and institutions. It offers commission-free trades on US stocks and ETFs, with no account fees and no minimums to open a retail brokerage account. Fidelity also provides tools and resources to help investors manage their own investments, including stocks, ETFs, mutual funds, and CDs.

Mutual Funds

Fidelity has a strong reputation for its mutual funds, with a large selection of no-transaction-fee funds. These include the Fidelity Zero index funds, which have no expense ratio and no minimum investment requirement.

Retirement Services

Fidelity helps individuals save for retirement by offering various retirement accounts, such as IRAs and 401(k) plans. They also provide resources and guidance to help individuals manage their retirement planning.

Wealth Management

Fidelity Wealth Management offers portfolio management services for individuals with more than $500,000 in assets. They provide credentialed advisors who can help clients manage their portfolios and achieve their financial goals.

Life Insurance

Fidelity provides life insurance products to help individuals protect their loved ones financially.

Cryptoasset Custody and Trading

Fidelity launched a separate entity in 2018 dedicated to institutional cryptoasset custody and cryptocurrency trading. They also offer Bitcoin as an investment option in their 401(k) plans.

Educational Resources

Fidelity provides educational resources and research options for investors of all levels, from beginners to active traders. Their resources cover a range of topics, including stocks, ETFs, mutual funds, and retirement planning.

Trading Platforms

Fidelity offers two trading platforms: Fidelity.com and Active Trader Pro. Both platforms are free and provide advanced screeners, research tools, and strategy-testing tools. Active Trader Pro is a downloadable desktop platform that includes intuitive shortcuts, market insights, and advanced options tools.

Retirement planning

Fidelity is a well-known investment provider that offers a range of services, including retirement planning. Here are some key considerations for retirement planning with Fidelity:

Retirement Accounts

Fidelity offers various retirement account options, including Individual Retirement Accounts (IRAs) such as the traditional IRA and Roth IRA. These accounts have tax advantages and can help you save for retirement efficiently. Fidelity also provides 401(k) plans, which are employer-sponsored retirement plans.

Planning Tools

Fidelity has a Planning and Guidance Center that allows you to create and monitor multiple financial goals. They provide rules of thumb, such as their guideline to save 10 times your income by age 67. Additionally, they offer a simple calculator to estimate your monthly cash flow during retirement.

Investment Options

Fidelity provides a diverse range of investment options, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and more. They have a strong reputation for their mutual funds, with a large selection of no-transaction-fee funds, including their Zero expense ratio funds. You can also invest in cryptocurrencies like Bitcoin, Ethereum, and Litecoin.

Educational Resources

Fidelity offers extensive educational resources for retirement planning, catering to both beginners and experienced investors. They provide insights on various factors to consider, such as healthcare expenses, inflation, and investment strategies. Their website has a dedicated section for retirement planning, where you can access articles, tools, and tips to guide your decisions.

Customer Support

Fidelity is known for its strong customer support, providing 24/7 assistance through phone, email, chat, social media, and physical branches. Their online Learning Center uses machine learning to offer customized educational materials based on your investing behavior.

Fees and Charges

Fidelity has eliminated most account fees and does not charge commissions on stock, ETF, or option trades. However, there is a $0.65 per-contract charge for options trades. They also offer a range of no-expense-ratio index funds, which can help reduce fees for retirement investors.

In summary, Fidelity provides a comprehensive suite of tools, resources, and investment options for retirement planning. Their customer-centric approach, combined with educational resources and planning tools, makes them a popular choice for individuals seeking to plan for their retirement.

Wealth management

Fidelity Wealth Management is a dedicated advisory service offered by the company. It provides customers with a dedicated advisor who will work with them to create a plan to help their wealth reach its full potential. The advisor will get to know the customer and what is important to them and will partner with them on a customised plan designed to help grow and protect their wealth. This includes comprehensive planning, covering topics like retirement, taxes, healthcare, and estate planning.

Fidelity Wealth Management offers two service models: Fidelity Wealth Management and the Fidelity Advisory Services Team. The former includes a relationship with a dedicated advisor and access to specialists, while the latter includes access to a team of phone-based specialists for financial planning and investment support. Both services include access to Portfolio Advisory Services (PAS), the core investment management component of Fidelity Wealth Services.

Fidelity Wealth Management provides eligible customers with planning and ongoing investment management based on their financial picture. The general eligibility requirement is having $500,000 managed through Fidelity Wealth Services, with a gross advisory fee of 0.50%-1.50%.

Fidelity also offers Private Wealth Management, which provides customers with their own wealth management team, comprehensive financial planning, and investment management. The general eligibility requirement for this service is having $2 million managed through Fidelity Wealth Services or Fidelity Strategic Disciplines, and $10 million or more in total investable assets. The gross advisory fee for this service is 0.20%-1.04%.

In addition to these services, Fidelity offers specialised offerings such as separately managed accounts, fixed income and bond investing, and trust solutions for inheritance and estate planning.

Fidelity Wealth Management provides customers with a range of tools and resources to help them make informed investment decisions and protect their wealth.

Financial planning

When it comes to financial planning, Fidelity is a well-known name offering a comprehensive range of services to help individuals secure their financial future. As a leading investment provider, Fidelity offers a wide array of tools and resources to assist in various aspects of financial planning. Here's an overview of how Fidelity can aid in crafting a robust financial strategy:

Investment Options

Fidelity provides access to numerous investment choices, catering to diverse risk tolerances, goals, and preferences. Individuals can choose from a broad selection of investment products, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and options. Fidelity offers extensive research tools and insights to help investors make informed decisions. Their platform provides real-time market data, analyst reports, and screening tools to identify investments aligned with one's financial objectives.

Retirement Planning

Retirement planning is a key focus area for Fidelity. They offer various retirement account options, such as Traditional IRAs, Roth IRAs, and 401(k) plans. Fidelity provides resources to help individuals determine the right retirement account for their needs, offering tax advantages and a secure path towards building retirement savings. Additionally, Fidelity's retirement planning tools assist in setting goals, estimating future expenses, and creating a sustainable withdrawal strategy during retirement.

Education Savings

Fidelity also helps individuals save for education expenses through 529 college savings plans. These plans offer tax benefits and flexible investment options to save for a child's future education costs. Fidelity provides resources to compare different 529 plans and choose the one that aligns with specific needs and goals.

Financial Guidance and Resources

Fidelity stands out for its extensive library of financial education resources. They offer articles, webinars, and interactive tools to help individuals navigate various financial topics, from investing basics to estate planning. Fidelity's website provides goal-setting tools, budget planners, and calculators to help individuals assess their financial situation and make informed decisions. For those seeking personalized advice, Fidelity also offers financial planning services, connecting individuals with professional advisors to create customized financial plans.

Digital Trading Platform

Fidelity's digital trading platform offers a seamless and user-friendly experience for those who prefer to manage their investments independently. The platform provides real-time market data, advanced charting tools, and trading ideas to help individuals execute their investment strategies with ease.

In summary, Fidelity is a comprehensive investment provider, offering a wide range of financial planning services. From diverse investment options to retirement and education savings plans, Fidelity provides the tools and resources needed to build a secure financial future. Their extensive educational resources and professional financial planning services further empower individuals to make informed decisions and achieve their financial goals.

Investment research and analysis

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. Established in 1946, the company is one of the largest asset managers in the world, with trillions of dollars in assets under management and administration.

Fidelity offers a wide range of investment research and analysis tools to its customers, making it a popular choice for investors. Here is an overview of their investment research and analysis offerings:

• Educational Resources: Fidelity provides extensive educational resources for investors, including videos, articles, and professional insights for investors of all experience levels. Their Online Learning Center uses machine learning to offer customised educational materials that align with each customer's investing behaviour.
• Trading Platforms: Fidelity offers two main trading platforms: Fidelity.com and Active Trader Pro. Both platforms are free and provide advanced screeners, research, and strategy-testing tools based on historical data. Active Trader Pro is a downloadable desktop platform with intuitive shortcuts, market insights, technical and options filters, and advanced trading tools.
• Mutual Funds: Fidelity has a strong reputation for its mutual funds, offering a large selection of no-transaction-fee funds, including the Fidelity Zero index funds, which have no expense ratio and no minimum investment requirement.
• Stock Research: Fidelity provides stock research from several third-party providers, such as Zacks Investment Research and Argus. The Equity Summary Score on stock quote pages consolidates ratings from these research providers, giving an accuracy-weighted sentiment.
• ETF Research: Fidelity offers ETF research from multiple providers, allowing investors to explore various investment options.
• Options Trading: Fidelity supports options trading and provides options strategy ideas through options analysis software LiveVol.
• Crypto Trading: Fidelity offers crypto trading through Fidelity Crypto, allowing investors to trade Bitcoin, Ethereum, and Litecoin.
• Bond Trading: Fidelity clients can trade over 100,000 individual bonds, including corporate, municipal, and government bonds, as well as FDIC-insured CDs and bond funds.
• Fractional Shares: Fidelity enables traders to purchase fractional shares, allowing investors to diversify into higher-cost stocks by buying a portion of a share.
• International Investing: Fidelity provides access to foreign markets through individual stocks, ETFs, and mutual funds, making it easier for investors to diversify their portfolios globally.
• Retirement Planning: Fidelity offers retirement planning services, helping individuals save for retirement and offering products such as IRAs and 401(k) plans.
• Customer Support: Fidelity provides 24/7 customer support through various channels, including phone, email, chat, social media, and physical branches, ensuring that investors can easily access the help they need.

Fidelity's investment research and analysis tools cater to a wide range of investors, from beginners to active traders. Their combination of educational resources, trading platforms, investment options, and customer support makes them a comprehensive choice for individuals seeking to make informed investment decisions.

Frequently asked questions