Mutual funds are when many investors pool their money together in order to purchase a specific set of stocks or bonds. Nowadays, there are many different mutual funds to choose from, each with its own benefits and drawbacks. So, we’ve put together a list of some of the best Fidelity mutual funds in the long run.
Fidelity 500 Index Fund (FXAIX)
Fidelity 500 Index Fund is benchmarked to the S&P 500 which consists of top 500 publicly traded corporations in the U.S. This mutual fund is one of the most popular choices for investors of all sizes, and for good reason. Fidelity 500 gives investors a wide and varied exposure to large corporations which tend to be relatively stable. Also, the fees are incredibly cheap with a tiny expense ratio of 0.015%. One thing to keep in mind is that S&P 500 is weighted by size so companies like Microsoft (MSFT) and Apple (AAPL) can have a large impact on this index.
Fidelity Nasdaq Composite Index Fund (FNCMX)
FNCMX functions in a similar manner to similarly to Fidelity 500 but focuses on corporations that are listed on the Nasdaq Composite exchange. It comprises around 3,100 stocks which are mostly for tech-oriented companies. Because Nasdaq has a high concentration of companies in the technology sector, FNCMX functions as an indicator of how well the tech market is performing.
Fidelity Total Market Index Fund (FSKAX)
It may be difficult to choose what to invest in nowadays so there are mutual funds dedicated to those who would like to invest in a little bit of everything. Fidelity Total Market Index Fund consists of 3,700 stocks covering anything from billion-dollar companies to small and ambitious startups. Again, the top corporations do occupy a significant percentage of all assets, but Fidelity Total Market Index Fund is as diverse as it gets.
Fidelity U.S. Bond Index Fund (FXNAX)
Index funds don’t just have to invest your money in stocks, as bonds are also valuable assets with that retain value well over the long term. FXNAX offers a diversified portfolio with at least 80% of the fund’s assets in bonds included in the Bloomberg U.S. Aggregate Bond Index. While the returns aren’t as impressive as those of other index funds FXNAX tends to offer more stability. In addition, the incredibly low expense ratio of 0.025% makes this index fund even more appealing.