Fidelity Investments: What's Under The Uoa Umbrella?

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, and insurance. The company has a strong reputation for its mutual funds, with a large selection of no-transaction-fee funds and investor-friendly practices. In addition to its financial services, Fidelity provides educational resources and research options for investors of all levels, from beginners to active traders. With its low costs, advanced trading features, and excellent customer support, Fidelity is a well-rounded brokerage serving a diverse range of investors.

Fidelity's mutual funds

Fidelity Investments is an American 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 $5.8 trillion in assets under management and $15 trillion in assets under administration as of September 2024.

Fidelity offers a wide range of mutual funds, covering all asset classes, from domestic equity to specialised sectors. With over 70 years in the business, the company has the tools and experience to help investors build an investment strategy that matches their investing style.

Domestic Equity Funds

Fidelity's domestic equity funds offer exposure to successful, innovative, and profitable companies within the United States. These funds may provide significant appreciation potential and are suitable for risk-tolerant investors. Fidelity has over $619 billion in U.S. equity assets under management and covers over 2,100 stocks with more than 200 equity research professionals.

International Equity Funds

Fidelity's international equity funds provide investors with access to the growth potential of companies located outside the United States. With over 50 years of international asset management experience and $148 billion in international equity assets, these funds offer a broad set of investment choices for those looking to tailor their international exposure.

Sector Funds

Fidelity's sector funds allow investors to focus on specific industries or segments of the market, such as consumer discretionary, consumer staples, energy, financials, and healthcare. These funds offer tactical investment approaches, more precise asset allocation, and greater diversification for an investor's portfolio.

Fixed Income Funds

Fidelity's fixed-income funds provide access to one of the country's largest and most experienced investment organizations, with over $460 billion in bond assets. The company has over 750 investment professionals located worldwide, offering a range of investment choices, including short-duration, corporate, mortgage, government, diversified/opportunistic, international, high yield, and municipal bond funds.

Asset Allocation Funds

Fidelity's asset allocation funds offer a range of strategies, including target date, target date index, target date blend, target risk, income and real return strategies, balanced allocation, HSA funds, and simplicity RMD funds. These funds provide asset class diversification and professionally-managed strategies to help meet investors' needs for income and growth potential.

Index Funds

Fidelity's index funds aim to track the performance of specific stock or bond market indexes, such as the S&P 500 or the Russell 2000. These funds generally have lower management fees, are potentially more tax-efficient, and have reduced portfolio turnover. Fidelity has over 30 years of experience managing index funds and offers some of the lowest expense ratios in the industry.

Money Market Funds

Fidelity's money market funds focus on short-term investments with minimal credit risk. The company has experience managing more than $900 billion in assets for millions of customers, emphasising stability and safety for investors. These funds offer a broad set of choices to suit both retirement and non-retirement investing goals.

Zero-fee index funds

• Lower Costs: Zero-fee funds eliminate management fees, providing investors with a cost-effective way to invest in the stock market. This can lead to higher returns over time, as there are no fees deducted from the investment gains.
• Diversification: Index funds, in general, offer investors exposure to a broad range of stocks or assets, helping to diversify their portfolio and reduce risk. Zero-fee funds provide this benefit without incurring additional costs.
• Tax Efficiency: Index funds are known for being more tax-efficient than actively managed funds. Zero-fee funds further enhance this advantage by eliminating expenses that could otherwise erode tax benefits.
• Long-Term Performance: While past performance is not a guarantee of future results, zero-fee index funds have the potential for solid long-term returns. For example, the ZERO Large Cap Index Fund has delivered a 5-year annualized return of 14.8%.
• Automatic Investment Strategy: Index funds, including zero-fee options, are passive investment strategies. They aim to replicate the performance of a specific market index rather than actively selecting stocks. This means investors can benefit from a hands-off approach while still participating in market gains.

Fidelity's ZERO Total Market Index Fund (FZROX) and ZERO International Index Fund (FZILX) have grown to over $1 billion in assets, demonstrating the popularity and success of these zero-fee offerings. With no minimum investment requirements and 24/7 customer service, Fidelity's zero-fee index funds offer a compelling opportunity for investors seeking low-cost, diversified investment options.

Investment options

Fidelity Investments offers a wide range of investment options to its customers, including:

Stocks: Customers can trade domestic and international stocks on Fidelity's platform, including fractional shares of stocks starting from as little as $1. This allows investors to diversify their portfolios by investing in a slice of a share rather than purchasing a full share.

Mutual Funds: Fidelity has a strong reputation for its mutual funds, with a large selection of no-transaction-fee funds. The company offers over 3,300 mutual funds with no transaction fees and nearly 950 funds with expense ratios of 0.50% or less. These funds are from Fidelity and other mutual fund companies.

Exchange-Traded Funds (ETFs): Fidelity offers a range of ETFs, including 28 from Fidelity, 329 from iShares®, and 146 from additional industry leaders. ETFs can be traded commission-free online.

Options: Fidelity supports equity, ETF, and index options trading, including weekly expirations. However, options trades carry a $0.65 per-contract charge.

Bonds and CDs: Investors can choose from over 30,000 investment-grade bonds and other fixed-income securities. This includes FDIC-insured CDs and bond funds.

Precious Metals: Customers can invest in gold, silver, platinum, and palladium.

Cryptocurrencies: Fidelity offers trading in three cryptocurrencies: Bitcoin, Ethereum, and Litecoin. The company launched a separate entity dedicated to institutional crypto-asset custody and cryptocurrency trading in 2018 and has since expanded its offerings in this space.

International Investing: Fidelity provides access to international investing in 25 markets and 16 currencies.

Extended-Hours Trading: Customers can place trades before and after market hours, with pre-market orders starting at 7 a.m. and after-market orders accepted until 8 p.m.

Margin Trading: Fidelity offers margin borrowing for leverage and short-selling strategies.

Fidelity Basket Portfolios: This feature allows investors to build and manage a basket of stocks and ETFs as a single investment, providing more possibilities and control.

Fidelity Youth Account: This account is designed for teenagers (ages 13 to 17) to learn, spend, save, and invest. It offers access to stocks, ETFs, and select Fidelity mutual funds, including fractional shares.

Retirement planning

Investment Options:

Fidelity offers a diverse range of investment choices to suit different risk tolerances and financial goals. These include stocks, mutual funds, exchange-traded funds (ETFs), options, bonds, and fixed-income securities. Fidelity also provides access to international markets and various asset classes, allowing for a well-diversified portfolio.

Retirement Accounts:

Fidelity offers various types of retirement accounts, such as traditional IRAs and Roth IRAs. These accounts have significant tax advantages and can help individuals save for retirement outside of their standard brokerage accounts.

Educational Resources:

Fidelity provides extensive educational resources and research tools to help individuals make informed investment decisions. Their Learning Center offers training videos, articles, and expert opinions tailored to investors of all experience levels, ensuring that retirees can make confident choices.

Fractional Shares:

Fidelity allows investors to purchase fractional shares, enabling them to invest in higher-cost stocks by buying a fraction of a share. This feature promotes diversification and makes investing more accessible to those with smaller budgets.

Zero-Fee Funds:

Fidelity introduced a line of mutual funds with zero expense ratios, meaning investors pay no fees on these funds. This initiative helps retirees maximize their investment returns by minimizing costs.

Fidelity offers various tools to aid in retirement planning, such as retirement calculators and retirement income funds. These tools help individuals estimate how much they need to save and provide strategies to generate income during retirement.

Customer Support:

Fidelity is known for its strong customer service, with 24/7 phone, chat, and email support. They also have over 200 branches for in-person advice and educational resources, ensuring that retirees can get the assistance they need.

Rollovers and Consolidation:

Fidelity makes it easy to transfer and consolidate retirement funds from previous employers or other accounts into a single account without taxes or penalties. This simplifies the process of managing multiple retirement accounts.

Crypto and Forex Trading:

While not directly related to retirement planning, Fidelity offers cryptocurrency and forex trading for those interested in diversifying their portfolios with alternative assets.

In conclusion, Fidelity Investments provides a comprehensive suite of tools, resources, and investment options to help individuals plan for their retirement effectively. Their combination of educational resources, low-cost investment options, and customer support makes them a popular choice for those seeking to secure their financial future during their golden years.

Customer support

Fidelity Investments is a multinational financial services corporation based in Boston, Massachusetts. It offers a wide range of investment options, including stocks, bonds, mutual funds, and ETFs. The company provides extensive customer support to its clients, ensuring that they have the necessary tools and resources to make informed investment decisions.

Fidelity's customer support is available 24/7 through various channels, including phone, email, chat, social media, and in-person at over 200 branches. The company also has a network of over 150 Investor Centers across the country, providing clients with easy access to investment and trading consultants.

Fidelity's website features an extensive Learning Center with training videos, articles, and expert opinions tailored to investors of all experience levels. The company also offers independent research from 20+ providers, helping investors identify investment opportunities, generate ideas, and analyze market trends.

Additionally, Fidelity provides advanced trading platforms, such as Active Trader Pro, which enable investors to make smarter decisions with real-time insights and visual snapshots to monitor their investments. The company's easy-to-use mobile app allows clients to manage their portfolios, watch lists, and conduct trades anytime, anywhere.

Fidelity's customer support extends beyond just providing information; it also includes tools to help clients visualize and track their trades, such as the single-screen trade station, which consolidates real-time market data, research ideas, and trade execution on any browser, desktop, or tablet.

The company also offers a customized mobile app experience for teenagers (aged 13-17) with the Fidelity Youth Account, providing educational resources, articles, and online research tools to help them learn about investing.

Overall, Fidelity Investments prioritizes customer support by offering a variety of resources, tools, and channels to ensure that investors of all levels have the assistance they need to make informed decisions and achieve their financial goals.

Frequently asked questions