Fidelity is a fund giant that runs about 575 funds catering to a wide range of investors. It offers a variety of investment options, including mutual funds and exchange-traded funds (ETFs). One of the most conservative investment options at Fidelity is the Fidelity Conservative Income Bond Fund (FCNVX). This fund is an ultrashort-term actively managed bond fund that offers a stable share price and a current SEC yield of 5.20%low volatility and a steady return.
Characteristics | Values |
---|---|
Name | Fidelity Conservative Income Bond Fund (FCNVX) |
Average Annual Return | 5.20% |
Type | Ultrashort-term actively managed bond fund |
Credit Quality | High |
What You'll Learn
Fidelity ZERO Large Cap Index Fund (FNILX)
The Fidelity ZERO Large Cap Index Fund (FNILX) is a mutual fund that offers investors exposure to a broad range of large-cap US companies. The fund tracks the Fidelity US Large Cap Index, which includes well-known companies such as Meta Platforms (formerly Facebook), Alphabet (Google), and Berkshire Hathaway. This fund provides a diversified way to invest in large-cap stocks, which are generally considered to be established businesses with a strong track record and stable financial performance.
One of the key advantages of the Fidelity ZERO Large Cap Index Fund is its low-cost structure. As a mutual fund, it pools money from many investors to purchase a diversified portfolio of assets, spreading out the cost of investing across a large number of stocks. The fund also has a zero expense ratio, meaning investors are not charged an annual fee for managing their investment. This makes it a cost-effective option for investors seeking to minimize fees.
The fund's investment style is classified as a "large blend", indicating that it invests in a mix of growth and value stocks within the large-cap space. Growth stocks are shares of companies that are expected to grow at a faster rate than the market average, while value stocks are those trading at a lower price relative to their fundamentals and are considered undervalued by the market. By blending these two strategies, the fund aims to provide a balance between growth potential and value opportunities.
As of October 31, 2024, the fund had approximately 34.2% of its assets invested in the top 10 holdings, indicating a well-diversified portfolio. The largest holdings include well-known companies in the technology and communication services sectors, such as Meta Platforms and Alphabet. This fund could be an attractive option for investors seeking broad exposure to the large-cap US equity market while minimizing costs and taking a balanced approach to growth and value investing.
When considering any investment, it is essential to review the fund's prospectus, which includes important information about its objectives, risks, and fees. Investors should carefully evaluate their financial goals, risk tolerance, and time horizon before investing and consider diversifying their investments across different asset classes and market sectors to mitigate risk.
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Fidelity Conservative Income Bond Fund (FCNVX)
The Fidelity Conservative Income Bond Fund (FCNVX) is a mutual fund that offers a conservative approach to investing in bonds. With a Morningstar Medalist Rating of Silver, it is recognised for its sensible and clearly defined investment strategy, strong management team, and alignment with investors' interests.
The fund's primary objective is to provide a stable income stream with a low level of risk, focusing on preserving capital and generating consistent returns. This is achieved by investing primarily in high-quality, short-term bonds with a medium to limited interest rate sensitivity. As of October 31, 2024, the fund had approximately 4.2% of its assets invested in the top 10 holdings, including US Treasury bills and notes, as well as securities from companies like Athene Global Funding and Goldman Sachs Group, Inc.
The fund has a $0 minimum initial investment requirement, making it accessible to a wide range of investors. It offers a cost advantage with an expense ratio of 0.250%, which is within the second-cheapest fee quintile among its peers. As of December 11, 2024, the fund's net asset value (NAV) was 10.07, with a one-day return of +0.01%.
FCNVX is suitable for investors seeking a conservative bond investment strategy that prioritises capital preservation and consistent income generation. With its strong management, sensible strategy, and low expense ratio, it offers a reliable option for those wanting to invest in short-term, high-quality bonds.
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Fidelity ZERO International Index Fund (FZILX)
The Fidelity ZERO International Index Fund (FZILX) is a mutual fund that offers investors exposure to a diversified portfolio of large-blend foreign stocks. With a Morningstar Medalist Rating of Silver, it has a strong management team and a sound investment process. The fund's management fee is within the lowest fee quintile among its peers, giving it a cost advantage.
FZILX's objective is to track the performance of the MSCI EAFE Index, a benchmark for developed international stock markets. This index includes countries from Europe, Australasia, and the Far East, excluding Canada and the United States. By investing in FZILX, you gain instant diversification across these regions.
FZILX has a large number of holdings, with its top 10 holdings accounting for 12% of the portfolio as of October 31, 2024. Some of its notable holdings include Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, and Novo Nordisk AS Class B. The fund also holds cash and equivalents, as well as futures contracts on the MSCI EAFE and Emerging Markets Indices.
In terms of investment style, FZILX falls under the category of foreign large-blend funds. This means it primarily invests in large-cap companies across developed international markets. The fund's investment process is based on a passive management strategy, aiming to replicate the performance of the underlying index rather than actively picking stocks.
FZILX has a low distribution fee level and a minimum initial investment requirement of $0, making it accessible to a wide range of investors. As with any investment, it's important to consider your own financial goals, risk tolerance, and time horizon before deciding if FZILX is the right choice for your portfolio.
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Fidelity ZERO Total Market Index Fund (FZROX)
The Fidelity ZERO Total Market Index Fund (FZROX) is a large-blend mutual fund with a Morningstar Medalist Rating of Gold as of November 30, 2024. The fund has a strong management team and a sensible, clearly defined, and repeatable performance objective and investment process. As of December 30, 2024, the fund's net asset value (NAV) was 20.44, with a one-day return of -1.06%.
FZROX has a total of $25.7 billion in assets and a low distribution fee level. The share class type is No Load, meaning there is no sales charge or commission when purchasing shares of the fund. The minimum initial investment required to invest in the fund is $0, making it accessible to a wide range of investors.
FZROX's portfolio holdings as of October 31, 2024, include Meta Platforms Inc Class A, Alphabet Inc Class A and Class C, and Berkshire Hathaway Inc Class B. The fund's top 10 holdings make up 30.5% of its total assets.
FZROX offers a cost advantage over its competitors, with fees priced within the least expensive fee quintile among peers. This makes it an attractive option for investors seeking a low-cost, diversified investment in the total market index.
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Fidelity Balanced Fund (FBALX)
The Fidelity Balanced Fund (FBALX) is a large-blend fund with a Morningstar Risk Rating that allocates 50-70% to equity. As of December 2024, the total assets of FBALX were valued at 56.4 billion, with an expense ratio of 0.470% and a distribution fee level that is low.
FBALX has a Morningstar Medalist Rating, which is based on a fundamental assessment of the pillars of the Process, People, and Parent. The Process Pillar assesses the performance objective and investment process for security selection and portfolio construction. The People Pillar evaluates the management team's experience and ability, and the Parent Pillar rates the parent organisation's priorities and whether they align with the investors' interests.
In December 2024, there was a change in the management team, with Douglas Simmons and Ali Khan stepping down. Pranay Kirpalani and Chris Lin took over their responsibilities, with Kirpalani managing the utilities portfolio and Lin co-managing the technology portfolio with Priyanshu Bakshi.
FBALX's top holdings as of September 30, 2024, included Meta Platforms Inc Class A, Fidelity Cash Central Fund, Alphabet Inc Class A, and United States Treasury Notes.
While I cannot comment on whether FBALX is the most conservative investment at Fidelity, I can tell you about the Fidelity Conservative Income Bond Fund (FCNVX) and the CT and DE Conservative Portfolios, which are also offered by Fidelity and may be worth investigating further.
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Frequently asked questions
The Fidelity Conservative Income Bond Fund (FCNVX) is among the most conservative investments at Fidelity. It is an ultrashort-term actively managed bond fund with a stable share price and a current SEC yield of 5.20%.
SEC yield, or the standardised yield, is a formula used to calculate the yield of a mutual fund. It is calculated by dividing the net interest per share earned by a fund over a 30-day period by the maximum offering price per share on the last day of the period.
The FCNVX is a suitable replacement for a money market mutual fund, with the opportunity for a slightly higher yield. It has outperformed its Morningstar category over the past three, five, and ten years. Additionally, it has a high credit quality tilt.
Some other conservative investment options at Fidelity include the DE Conservative Portfolio (Fidelity Funds/Fidelity Index) and the CT Conservative Portfolio (Fidelity Funds).
Fidelity mutual funds have no minimum investment requirements, no transaction fees, and offer zero-expense-ratio index mutual funds. This makes them accessible to new and young investors and allows for effective free investing.