The Investor's Guide to Fidelity Funds
Fidelity is an international provider of mutual funds and other financial services. They offer various no-load and load mutual funds. A load mutual fund charges a sales charge, or commission at the time of the sale. A no-load fund does not charge this sales charge, and all of the money goes to work for you immediately. Over 300 Fidelity mutual funds are available with many different objectives to suit any type of investor and their individualized investment plans.
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Domestic Stock Funds
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Fidelity offers many different domestic stock mutual funds. These funds invest in stocks or in ownership positions in different American companies. They can have many objectives, ranging from achieving the highest growth possible to producing income for the shareholders in the form of dividends. One of the most famous Fidelity domestic stock funds is the Fidelity Contrafund. This fund has a long term track record for growth. Fidelity's stock funds also include index funds like the Fidelity Spartan. These purchase stocks based on a market index such as the Standard and Poor's 500. Index funds have historically low expenses when compared to other stock funds.
Bond Funds
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Bond funds invest in business debt. They purchase the short and long term debt obligations that businesses issue as bonds. Bonds have the capability of increasing in value, but they also produce income in the form of interest payments on the bond. They are ideal for investors who want less risk or to spread their risk out by diversifying. Tax free bond funds are also available to help mitigate the tax liability of investors. The Fidelity GNMA fund invests in mortgage-backed securities. The Fidelity Total Bond Fund is a broad-based bond fund, investing in many different bonds. Fidelity offers many other bond funds with varying objectives.
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International Funds
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International funds come in bond or stock variety and invest in oversees companies. These funds are important in a diversified global economy. Different regional funds invest in companies located in specific areas of the world, such as the Fidelity China Region or Fidelity Canada fund. Others, such as the Fidelity Global Balanced Fund, take a broader based approach and spread their investments out. International funds can vary more in their value than other types, and may carry a higher risk.
Money Market Funds
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Fidelity money market funds invest in relatively secure short-term corporate obligations that pose little risk of loss. They are an investment vehicle people use to invest money that they need to keep liquid. In exchange for this liquidity, the returns are usually lower than other types of mutual funds. Money market funds are also available in tax free as well as taxable funds. Fidelity Cash Reserves and Fidelity Government Mutual Fund are two popular Fidelity money market funds.
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