Fidelity's Low-Minimum Mutual Funds: Best Investment Options

Fidelity is a world leader in mutual funds, with a global network of nearly 400 research professionals and one of the largest research departments in the industry. The company offers a range of mutual funds with lower minimum investment levels, including the Fidelity ZERO Large Cap Index Fund, the Fidelity ZERO Extended Market Index Fund, the Fidelity ZERO Total Market Index Fund, and the Fidelity ZERO International Index Fund. These funds have a 0% expense ratio and no minimum investment requirements, making them accessible to a wide range of investors. In addition to these zero-expense-ratio funds, Fidelity also offers a variety of other mutual funds with low minimum investment requirements, providing investors with a range of options to choose from.

Zero minimum investment mutual funds

Fidelity offers a range of mutual funds with zero minimum investment requirements. These include:

• Fidelity® ZERO Large Cap Index Fund (FNILX): This fund seeks to provide investment results that correspond to the total return of a broad range of large-capitalization U.S. companies. It has a 0% expense ratio and no minimum investment requirement.
• Fidelity® ZERO Extended Market Index Fund (FZIPX): This fund seeks to provide investment results that correspond to the total return of a broad range of mid- to small-capitalization U.S. companies. It has a 0% expense ratio and no minimum investment requirement.
• Fidelity® ZERO Total Market Index Fund (FZROX): This fund seeks to provide investment results that correspond to the total return of a broad range of publicly traded companies in the US. It has a 0% expense ratio and no minimum investment requirement.
• Fidelity® ZERO International Index Fund (FZILX): This fund seeks to provide investment results that correspond to the total return of foreign developed and emerging stocks. It has a 0% expense ratio and no minimum investment requirement.

These funds are part of the "Fidelity Zero" lineup, which charges a 0% expense ratio, making them free to invest in, especially when considering the lack of minimum investment requirements.

Fidelity also offers a wide range of other mutual funds with low expense ratios and no minimum investment requirements, as well as over 3,300 no-transaction-fee mutual funds.

Zero expense ratio index funds

Fidelity offers a range of zero expense ratio index mutual funds, which means there are no fees to invest in these funds. These include:

• Fidelity ZERO Large Cap Index Fund (FNILX) - Seeks to provide investment results that correspond to the total return of a broad range of large-capitalization U.S. companies.
• Fidelity ZERO Extended Market Index Fund (FZIPX) - Seeks to provide investment results that correspond to the total return of a broad range of mid- to small-capitalization U.S. companies.
• Fidelity ZERO Total Market Index Fund (FZROX) - Seeks to provide investment results that correspond to the total return of a broad range of publicly traded companies in the US.
• Fidelity ZERO International Index Fund (FZILX) - Seeks to provide investment results that correspond to the total return of foreign developed and emerging stocks.

These funds are available to individual retail investors who purchase their shares through a Fidelity brokerage account. They are also available with no minimum investment requirements, no minimums to open an account, and no account fees for retail brokerage accounts.

Fidelity's zero expense ratio index funds are a great option for investors looking to keep costs low, as they offer a straightforward way to reduce fees and ensure that more of your investment goes towards compounding growth.

Zero account fees for retail brokerage accounts

Fidelity offers zero account fees for retail brokerage accounts. This means that there are no account fees or minimums to open a retail brokerage account, including IRAs. However, it's important to note that expenses charged by investments (e.g. funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply.

Fidelity's zero account fees for retail brokerage accounts make it an attractive option for investors, especially when combined with its wide range of investment choices, free independent research, and competitive rates. With no account fees, investors can keep more of their money invested and growing. This is especially beneficial for long-term investors and those who are just starting and may have limited funds to invest.

Fidelity's zero account fees also provide flexibility for investors. Without account minimums, investors can choose how much they want to invest and are not locked into a specific amount. This flexibility allows investors to adjust their investment strategies as needed without worrying about account fees or minimums.

In addition to zero account fees, Fidelity offers a variety of investor-friendly features. These include a large selection of no-transaction-fee funds, including the Fidelity Zero index funds, which have no expense ratio and no minimum investment requirement. Fidelity also provides commission-free trades for online US stock, ETF, and option trades.

Fidelity's zero account fees for retail brokerage accounts, combined with its extensive investment options, research tools, and competitive rates, make it a compelling choice for investors seeking to maximize their returns while minimizing costs.

No sales loads

No-load mutual funds do not have sales charges attached to them, but they may still have expense ratios. Sales loads are commissions paid to the advisor or broker who sells you the fund. These can be applied when you buy a fund (front-end sales loads) or when you sell your shares (back-end sales loads) and can be as high as 8.5% of your investment.

Fidelity offers a range of no-load mutual funds that also come with no minimum investment amounts. These include:

• Fidelity 500 Index Fund (FXAIX): This fund has a rock-bottom expense ratio of 0.015% and is one of the largest mutual funds to track the Standard & Poor's (S&P) 500 Index. It has over $534 billion in assets under management (AUM) as of Q1 2024.
• Fidelity NASDAQ Composite Index Fund (FNCMX): This fund has a net expense ratio of 0.29%, which is still among the cheapest funds tracking the NASDAQ Composite Index.
• Fidelity ZERO International Index Fund (FZILX): This fund has a zero-fee model with no load and tends to stick with larger global names to limit risk.
• Fidelity ZERO Total Market Index Fund (FZROX): This fund is similar to the ZERO 500 Index Funds but adds small-cap and mid-cap exposure to capture the entire U.S. equity market. It charges no fees or loads and has over $20 billion under management.
• Fidelity ZERO Large Cap Index Fund (FNILX): This fund tracks just over 500 large-cap U.S. stocks via the proprietary Fidelity U.S. Large Cap Index and has a 0% expense ratio.
• Fidelity Select Semiconductors Portfolio (FSELX): This fund invests primarily in companies that design, manufacture, or sell semiconductors or similar electronic components. It has an average annual return of nearly 27% over the past 10 years and over 31% in the past five years.
• Fidelity U.S. Sustainability Index (FITLX): This fund takes a best-in-class approach, only including companies with high environmental, social, and governance (ESG) ratings relative to their competitors.

Low fees

Fidelity offers a range of low-cost index funds and actively managed funds with competitive fees. Here is a list of some of their low-fee mutual funds:

Fidelity 500 Index Fund (FXAIX)

With over $534 billion in assets under management (AUM) as of Q1 2024, this fund is one of the largest mutual funds tracking the Standard & Poor's (S&P) 500 Index. It has an ultra-low net expense ratio of just 0.015%, meaning that for every $1,000 invested, Fidelity charges only 15 cents per year in fees. This no-load fund has a five-star rating from Morningstar.

Fidelity NASDAQ Composite Index Fund (FNCMX)

While the concept of low cost is sometimes relative, the 0.29% net expense ratio of this fund is still among the cheapest for funds tracking the NASDAQ Composite Index. It had over $15 billion in assets at the end of the first quarter of 2024.

Fidelity ZERO International Index Fund (FZILX)

International mutual funds often have higher expense ratios due to the additional costs of global research and currency risk. However, Fidelity has offered international funds with low expense ratios for many years and recently launched a zero-fee model with its ZERO International Index Fund (FZILX). This fund, with over $4 billion in assets, tends to stick to larger global names to limit risk and has a zero expense ratio and no load.

Fidelity ZERO Total Market Index Fund (FZROX)

Similar to Fidelity's ZERO 500 Index Funds, this fund adds small-cap and mid-cap exposure to capture the entire U.S. equity market. It is an ideal core "all-in-one" portfolio holding with no fees or loads. The FZROX has over $20 billion in assets under management and a zero expense ratio but only a three-star rating from Morningstar.

Fidelity ZERO Large Cap Index Fund (FNILX)

This fund seeks to provide investment results that correspond to the total return of a broad range of large-capitalization U.S. companies. It has a 0% expense ratio and no minimum investment.

Fidelity ZERO Extended Market Index Fund (FZIPX)

This fund seeks to provide investment results that correspond to the total return of a broad range of mid- to small-capitalization U.S. companies. It has a 0% expense ratio and no minimum investment.

Fidelity also offers a range of other low-fee funds, such as the Fidelity Mid Cap Stock Fund (FMCSX) and the Fidelity Estate Investment Portfolio (FRESX), which provide exposure to medium-size stocks and the real estate industry, respectively.

Frequently asked questions