Advice for Fidelity Mutual Funds

pletal

Recycles dryer sheets
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May 25, 2009
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Good morning. Looking for advice for Fidelity Mutual Funds. Don't need the money for at least 10 years. Would like probably 4 different funds to spread risk. Would be adding small amount of money to funds every month. Really a 6-7% return would be all I am looking for. Rather conservative and have many CD's with Fidelity that kick off interest and am trying to cut down on the amount of CD's. Thanks in advance
 
I think we'd need to know what type of investments you want/need to match up to your desired Asset Allocation. All stocks? all bonds? a mix of some sort? Need international exposure? lots of options, but you should be following some sort of overall plan of allocation.
 
I just split my money between FXAIX (S&P index) and FXNAX (bond index). FSKAX or FZROX are also good choices, closer to VTI at Vanguard. All very low or no expense ratio index funds.
 
I agree that we need more info on your situation and your financial goals. Do you have any significant funds outside of FIDO?
 
I just split my money between FXAIX (S&P index) and FXNAX (bond index). FSKAX or FZROX are also good choices, closer to VTI at Vanguard. All very low or no expense ratio index funds.
Since VTI is an ETF, I believe you can purchase VTI at Fidelity with no commission fee. Someone please validate my statement.
 
I own VTI at Fidelity, no issues and you can have fractional shares. I also own FSKAX, which is Fidelity’s US Total Market fund.
 
Ten years is a decent time horizon. I would suggest going a bit aggressive along with mostly conservative.

Aggressive: FSELX, Fidelity Semiconductor fund, maybe put 10% in here.
US Market Index: FXAIX, Fidelity S&P500 Index fund, 50%
Hi Yield Bond: FAGIX, Fidelity Capital and Income fund, 20%
Total Bond Index: FTBFX, Fidelity Total Bond Index, 20%

This gives you essentially a 60/40 asset allocation. As the years go by you can reduce your exposure to the S&P500 Index fund and the Fidelity Semiconductor fund, if you deem it prudent.

(I own FSELX and FAGIX, and have owned FTBFX.)
 
... Would like probably 4 different funds to spread risk. ...
What risk are you worried about? A total US market fund or a global fund will have diversified away all individual stock risk leaving only market risk which cannot be diversified away.
 
What risk are you worried about? A total US market fund or a global fund will have diversified away all individual stock risk leaving only market risk which cannot be diversified away.
Yeah, maybe one equity fund (S&P 500?) and a total bond fund. That would give diversity enough to reduce most worries. YMMV
 
Ten years is a decent time horizon. I would suggest going a bit aggressive along with mostly conservative.
10 yrs? I'd go VERY aggressive. Odds are well in one's favor to come out ahead in the end.

I hesitate to suggest specific funds. I'm not a financial advisor, I just play one on TV.
 
For money I'm not needing for 5 years or more, I put it ALL in FXAIX Fidelity 500 Index Fund. I used to split it with FSKAX Fidelity Total Market Index Fund, but that has consistently paid less than the 500 index fund.
For money I'll need between 1 and 5 years, I do a CD ladder.
For money I'll need in that year, I keep in cash; SPAXX Fidelity Government Money Market. (BTW, pays as well as a laddered CD does for the time being @ 4.96% today)

I do not put a single thin dime in bond funds. I've lost fortunes in bonds through inflation and outright negative returns. I'd rather withdraw it and hide it under my mattress than put money in a bond ever again.

I also keep a place-holder amount in FTIHX Fidelity Total International Index Fund. It's been my experience that it returns around 33% of the S&P Index Fund and that as the S&P goes, so does the International market. Over the past 10 years anyways.
 
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