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We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
Fidelity Funds Are Renowned For Their Managers’ Stock
Fidelity celebrates good stock picking. The firm holds a contest every year for its portfolio managers: They get 60 seconds to pitch one idea, and the best pitch wins a dinner for four. The best performer after 12 months also wins dinner.
Maybe that’s why many of the best Fidelity funds stand up so well in our annual review of the most widely held 401 funds.
Here, we zero in on Fidelity products that rank among the 100 most popular funds held in 401 plans, and rate the actively managed funds Buy, Hold or Sell. A total of 22 Fidelity funds made the list, but seven are index funds, which we don’t examine closely because the decision to buy shares in one generally hinges on whether you seek exposure to a certain part of the market.
Actively managed funds are different, however. That’s why we look at the seven actively managed Fidelity funds in the top-100 401 list. We also review seven Fidelity Freedom target-date funds as a group as they all rank among the most popular 401 funds. And we took a look at Fidelity Freedom Index 2030 it has landed on the top-100 roster for the first time, and while it’s index-based, active decisions are made on asset allocation.
Let’s look at some of the best Fidelity funds for your 401 plan. We’ll determine which ones stand up to scrutiny, and which ones, if any, you should avoid.
- Rank among the top 401 funds: #59
- Best for: Investors who want an all-in-one, stock-and-bond portfolio
How We Approach Editorial Content
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.
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Transparency Is Our Policy Learn How It Impacts Everything We Do
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
Wed like to share more about how we work and what drives our day-to-day business.
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How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
- Verify your identity, personalize the content you receive, or create and administer your account.
- Provide specific products and services to you, such as portfolio management or data aggregation.
- Develop and improve features of our offerings.
To learn more about how we handle and protect your data, visit our privacy center.
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How Target Date Funds Work
Financial services firms manage families of target date funds, with individual versions for each year, past and future. Investors choose a fund that targets their anticipated year of retirement, and they may continue holding it until long after the target year has passed.
With target date funds, the term glide path describes how a funds asset allocation changes over time. All of the funds on this list utilize a through glide path, where the managers continue to adjust the balance of stock and bond funds after the designated target year. For some funds, the asset allocation changes end about five to seven years after the target date. For others, the changes continue for several decades.
For each target date fund in our evaluation, we focused on the 2060 version, suitable for someone looking to retire in about 40 years. In addition, we also evaluated the 2020 version, and some earlier versions, for insight on how the fund familys portfolio evolves as you enter retirement.