Home | Investing | Top 7 Fidelity Funds For Retirees

Top 7 Fidelity Funds for Retirees

Financial experts always emphasize the importance of retirement planning. While there are many investment avenues for those preparing for retirement, mutual funds are among the most popular. But individuals cannot just park their money in any mutual fund. Thorough research is important to lower the risk and get a good return. Fidelity is an actively managed mutual fund company with seasoned and large investment research teams, which makes them sought-after among those planning their retirement.

Top 7 Fidelity Funds for Retirees

Best Fidelity funds for retirees
While Fidelity has many mutual funds one can consider, a few are highly rated for retirees:

  • Fidelity Multi-Asset Index Fund or FFNOX
    Whenever someone talks about the best Fidelity funds for retirees, FFNOX has to be one of them. Earlier known as the Fidelity Four-in-One Index Fund, the FFNOX puts one’s money in seven bond index funds and Fidelity stocks. That means investors achieve broad diversification. FFNOX’s expense ratio is 0.13%, with average annual returns of 5.03% in three years, 8.46% in one year, and 12.72% year to date (YTD).
  • Fidelity Growth Discovery Fund or FDSVX
    These funds are expected to fetch yields at an above-average rate, so investors are willing to pay a premium for them. The last decade, which primarily comprised a relatively stable domestic economy and ultra-low interest rates, was notably well for growth stocks. FDSVX’s expense ratio is 0.67%. It provides an average annual return of 7.60% in three years, 15.61% in one year, and a ten-year annualized return of 15.2%.
  • Fidelity Nasdaq Composite Index Fund or FNCMX
    This fund closely monitors the price and yield of the Nasdaq Composite Index. Fidelity usually invests about 80% of its assets in common stocks covered by the Nasdaq. This mutual fund’s expense ratio is 0.37%. It provides average annual returns of 6.61% in three years, 18.37% in one year, and 37.58% YTD.
  • Fidelity Large Cap Growth Index Fund or FSPGX
    Such funds invest about 80% of their assets into securities listed in the Russell 1000 Growth Index, focusing on large-cap growth stocks. After investing in this Fidelity fund, retirees can expect an expense ratio as low as 0.035%. The average annual returns are 18.53% in three years, -10.91% in one year, and 13.64% YTD.
  • Fidelity Total Market Index Fund or FSKAX
    FSKAX fund managers track the total yield of a wide range of domestic equities. They allocate 80% of the fund’s assets to securities under the Dow Jones U.S. Total Stock Market Index. Investors of the FSKAX mutual fund can expect an expense ratio of 0.015% and average annual returns of 9.07% in three years, 8.42% in one year, and 19.08% YTD.
  • Fidelity US Sustainability Index Fund or FITLX
    These types of Fidelity funds track the MSCI USA ESG Index. FITLX targets large and mid-cap companies with positive social, governance, and environmental performance, provided they share common return and risk attributes. FITLX’s expense ratio is 0.11%, while its average annual returns are 10.627% in three years, 12.47% in one year, and 22.99% YTD.
  • Fidelity 500 Index Fund or FXAIX
    This fund seeks results that align with the total return of common stocks. About 80% of all assets are put in the stocks covered in the S&P 500 Index. Its expense ratio of FXAIX is 0.015%, and its average annual returns are 10.35% in three years, 10.14% in one year, and 20.28% YTD.

Types of Fidelity funds
Fidelity funds can be categorized into different types based on which stocks or assets they focus on:

  • Domestic equity funds
    These are US stock funds that offer exposure to profitable and innovative companies. Some popular Fidelity funds for 2024 under this category are the Fidelity Value Discovery Fund, Fidelity Stock Selector Large-Cap Value Fund, and Fidelity Blue Chip Value Fund.
  • International equity funds
    Under this fund, one invests in stocks of companies outside the country for more diversification. Two suitable international Fidelity funds for retirees are the Fidelity US Low Volatility Equity Fund and the Fidelity Sustainable US Equity Fund.
  • Sectors funds
    Such funds focus on a specific industry sector, enabling investors to target a specific market. Energy, healthcare, and technology are some common sectors on which Fidelity funds focus. Retirees looking for sector funds can invest in the Fidelity Large-Cap Stock Fund and Fidelity Disciplined Equity Fund.
  • Income funds
    Income funds invest in fixed-income securities and bonds, offering stability and income. The Fidelity Growth & Income Portfolio Fund and Fidelity Equity Dividend Income Fund are some of the best Fidelity income funds.
  • Asset allocation funds
    These combine asset classes like cash, bonds, and socks to achieve a specific risk-return portfolio. Some examples include Fidelity Contrafund and Fidelity Capital Appreciation Fund.
  • Index funds
    These include passive index funds that track specific market indices. The objective is to mimic the performance of the index they follow. Examples include the Fidelity 500 Index Fund and the Fidelity Large Cap Growth Index Fund.

Recent Articles

Easy dinner ideas that are a hit with families
Cooking

Easy dinner ideas that are a hit with families

Five quick and easy dinner ideas for a busy weekend
Cooking

Five quick and easy dinner ideas for a busy weekend

The world of Bon Appetite recipes
Food

The world of Bon Appetite recipes

8 healthy dinner recipes that can be made quickly
Food and Drink

8 healthy dinner recipes that can be made quickly

Five Quick Dinner Ideas to Save Your Evenings
Food

Five Quick Dinner Ideas to Save Your Evenings

Unique Ways to Add Eggplant to Your Diet
Uncategorized

Unique Ways to Add Eggplant to Your Diet