Fidelity Freedom Index Funds: A Comprehensive Guide

Fidelity Freedom Index Funds are designed to help you achieve your retirement goals with a low-cost, hassle-free investment approach. They offer a range of funds that automatically adjust their asset allocation as you get closer to retirement.

These funds are designed to be a one-stop solution for your retirement savings, with a single investment that grows and adapts to your changing needs over time. By investing in a Fidelity Freedom Index Fund, you can simplify your investment portfolio and reduce fees.

The funds are available in a variety of retirement dates, allowing you to choose the one that aligns with your expected retirement age. For example, the Fidelity Freedom Index 2045 Fund is designed for those expecting to retire in 2045.

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Investing in index funds is a low-cost way to diversify your portfolio and achieve long-term financial goals.

Index funds track a specific market index, such as the S&P 500, to provide broad market exposure.

The Fidelity Freedom Index Funds are designed to provide a straightforward way to invest in a diversified portfolio of stocks and bonds.

These funds are designed to be a one-stop-shop for investors who want to invest in a diversified portfolio without having to select individual stocks or bonds.

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Target date investing is a way to simplify retirement investing by choosing a fund that aligns with your planned retirement year.

This type of fund invests in a mix of different assets, offering growth potential while helping reduce risk.

Each fund has a unique asset mix that's designed to adapt to your changing needs over time.

Fidelity's investment team regularly rebalances the asset mix of each fund to ensure it remains aligned with your goals.

This hassle-free approach takes the guesswork out of investing and allows you to focus on what matters most.

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Investing in a fund can be a great way to diversify your portfolio and potentially earn higher returns. The fund's ID number, also known as the fund number, can be found on the Fund Basics section.

A fund's CUSIP number is like a unique identifier, just like a social security number for funds. It's used to track the fund's ownership and transactions.

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The daily distribution yield is the rate of return on the fund's income, and it's expressed as a percentage. As of a specific date, the fund's daily distribution yield was 2%.

The inception date is the day the fund was created, marking the beginning of its journey. The Fidelity Freedom Fund's inception date is a significant milestone in its history.

The fund's portfolio assets are its total value, measured in millions of dollars. As of a specific date, the fund's portfolio assets were $1.5 billion.

The expense ratio is a crucial factor in determining the fund's performance, as it affects the fund's returns. The expense ratio can be expressed as a percentage, and it's usually stated as a gross or net figure.

Here are some examples of expense ratios for the Fidelity Freedom Fund:

Weighted average maturity is a measure of the fund's average time to maturity, expressed in days or years. As of a specific date, the fund's weighted average maturity was 5.6 years.

Weighted average life is a related measure that indicates the fund's average time to liquidation, also expressed in days. As of a specific date, the fund's weighted average life was 5.8 years.

The turnover rate is a measure of the fund's trading activity, expressed as a percentage. As of a specific date, the fund's turnover rate was 10%.

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Choosing a Fidelity Freedom Fund is as simple as knowing your retirement date. Each of the 14 funds has a specific year in its name, which corresponds to the target date of the fund.

To choose the right fund, you need to determine the year you expect to retire. This will help you select the fund that's tailored to your needs.

Fidelity Freedom Funds become more conservative as the target date approaches, which means they reduce their equity exposure and become less risky.

You can use the interactive widget to adjust the number of years until you want to retire and see which fund is displayed.

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The Fidelity Freedom Index Funds are designed to provide long-term growth and income, but how have they actually performed? The funds have been around since their inception, with the longest-running fund having a portfolio inception date of {{ fundDetails.overview.portfolioInceptionDate }}.

Over the past year, the funds have delivered an average annual total return of {{ averageAnnualTotalReturn.oneYearReturn | naCheckZeroOrPlus:2 }} for the NAV and {{ averageAnnualTotalReturns.oneYearReturn | naCheckZeroOrPlus:2 }} for the with sales charge. This is impressive, especially considering the current market conditions.

Here are the average annual total returns for the funds over different time periods:

Performance is a key aspect of any fund, and it's essential to understand how it's doing. The fund's inception date is listed as {{ fundDetails.overview.portfolioInceptionDate | naCheck }}.

The average annual total returns for the fund are impressive, with a one-year return of {{ averageAnnualTotalReturn.oneYearReturn | naCheckZeroOrPlus:2 }}. This is a significant achievement, especially considering the current market conditions.

The fund's performance is also notable over the longer term, with a three-year return of {{ averageAnnualTotalReturn.threeYearReturn | naCheckZeroOrPlus:2 }} and a five-year return of {{ averageAnnualTotalReturn.fiveYearReturn | naCheckZeroOrPlus:2 }}. These numbers demonstrate the fund's consistency and reliability.

Here's a breakdown of the fund's average annual total returns:

The fund's sector allocation is also worth noting, with {{ holdingSubTypes.holdingSubTypeName }} making up a significant portion of the portfolio. The fund's holdings are diversified across various sectors, providing a balanced investment opportunity.

The fund's performance is also compared to a benchmark, which provides a useful reference point for investors. The benchmark's one-year return is {{ indexReturnOneValue.oneYearReturn | naCheckZeroOrPlus:2 }}, while the fund's one-year return is {{ averageAnnualTotalReturn.oneYearReturn | naCheckZeroOrPlus:2 }}. This comparison helps to put the fund's performance into context.

For more insights, see: Fidelity Index Funds Performance

The Fidelity Freedom Index Series is a type of target date fund series that consists of around 10 or 12 different funds, each marketed at different age demographics.

One of the funds in this series is the 2050 fund, which is used to assign ratings to the entire target date fund series. This fund is designed for savers looking to retire around the year 2050.

As time progresses and the target date approaches, the portfolio mix of the 2050 fund shifts away from stocks and towards bonds and other less-risky investments. This means that the fund becomes more conservative over time.

The mix of stocks in the portfolio stays the same across a target date fund series, so if you're invested in a fund from this series that's dated closer to today than 2050, you're likely invested in the same companies.

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The Fidelity Freedom Index Funds are designed to provide a low-cost, diversified investment option for your retirement savings.

These funds are available in a range of dates, from the year 2025 to 2065, allowing you to choose a fund that aligns with your expected retirement date.

Each fund has a unique investment mix that adjusts over time to maintain a level of risk and potential for returns.

Understanding the characteristics of a fund is crucial in making informed investment decisions. Fund characteristics can be broken down into various sub-sectors, each with its own unique performance metrics.

The sub-sector attribution section provides a detailed breakdown of the fund's performance across different sub-sectors. This includes the average weight of the fund and benchmark in each sub-sector, as well as the cumulative return and contribution to relative return.

Here's a breakdown of the sub-sector attribution metrics:

The sub-sector attribution section also provides insights into security selection and market selection. Security selection refers to the fund's ability to select individual securities that outperform the market, while market selection refers to the fund's ability to select the right market or sector to invest in.

The stock selection and sector selection metrics provide a detailed breakdown of the fund's performance in these areas. The contribution to relative return metric helps to identify the extent to which security selection and market selection have contributed to the fund's overall performance.

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When evaluating a fund's performance, it's essential to consider its valuation characteristics. A fund's valuation characteristics can give you a better understanding of its investment strategy and potential risks.

The fund's asset coverage is an important metric, as it shows the percentage of assets that are covered by securities. For example, if a fund has a 150% asset coverage, it means that for every dollar of assets, the fund has $1.50 worth of securities to back it up.

A fund's asset coverage can be found in the "Fund Asset Coverage" section, which shows the percentage of assets covered by securities. This metric is crucial in understanding the fund's risk profile and potential for returns.

Here are some key valuation characteristics to look out for:

Understanding these valuation characteristics can help you make informed decisions about your investments. By analyzing a fund's valuation characteristics, you can get a better sense of its investment strategy and potential risks.

When evaluating a fund's size characteristics, it's essential to understand the asset coverage and securities coverage. Fund asset coverage refers to the percentage of a fund's assets that are covered by its securities.

A fund's asset coverage is typically measured by the asset coverage percentage, which is around 100% in our example fund. This means that the fund's assets are fully covered by its securities.

The securities coverage is another important aspect of a fund's size characteristics. This refers to the number of securities that are covered by the fund's assets, out of the total number of securities in the fund. In our example, the fund securities coverage is 100% of the total securities.

Here are some key statistics on the fund's size characteristics:

The fund's size characteristics are comparable to those of the benchmark, with both having similar asset coverage and securities coverage.

The Fidelity Freedom Index Funds come with various fees that you should be aware of. The maximum sales charge is not specified, but the maximum CDSC (Contingent Deferred Sales Charge) is 1.00%.

The expense ratio for these funds is not publicly disclosed in the provided information, but the expense cap is 0.50%. This means that the fund's expenses will not exceed this amount.

Here's a breakdown of the fees you can expect:

Keep in mind that these fees are subject to change, and you should always check the fund's prospectus for the most up-to-date information.

The maximum sales charge is not specified in the fund details, but the maximum CDSC (Contingent Deferred Sales Charge) is {{(fundDetails.overview.featureInformation | filter:{featureCode:'64'})[0].featureValue | addPercent}}.

Expenses are a crucial factor to consider when investing in a fund. The expense ratio (gross) is not provided, but the expense cap is {{fundDetails.overview.expenseCap| naCheckPercent: 2}}.

Short-term trading fees apply to the fund, with a trading fee period of {{(fundDetails.overview.featureInformation | filter:{featureCode:'RFPRD'})[0].featureValue}} days.

Here's a breakdown of the fees and distributions associated with the fund:

Management fees, distribution and/or service (12b-1) fees, low balance fees, and other fees are not specified in the fund details.

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A Distribution Fund is a type of investment account that allows you to pool your money with others to invest in a variety of assets.

This type of fund is often used for retirement savings, and it's a great way to diversify your investments. The fees for a Distribution Fund can be quite high, with some funds charging as much as 2% of your investment each year.

Some Distribution Funds are more transparent than others, and it's essential to review the fund's prospectus to understand the fees and expenses involved. The prospectus will also outline the fund's investment objectives and strategies.

In some cases, Distribution Funds may have a load, which is a fee charged when you buy or sell shares in the fund. This can range from 2% to 5.75% of your investment.

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The pricing of a fund can be a complex topic, but let's break it down into simple terms. The Net Asset Value (NAV) is the current price of a fund's shares, which is ${{price.displayNav | checkDollar}} as of {{price.navDate | replaceByGivenString:'-':'/'}} at {{price.strikeTime | convertTimeAMPM}}.

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This value is calculated daily and is a good indicator of a fund's performance. The NAV is not the only factor to consider when evaluating a fund's pricing, but it's a crucial one.

A fund's price can fluctuate over time, and it's essential to understand the range of prices it has traded at. The 12-month low-high range is between ${{fundDetails.priceStatistics.displayTwelveMonthLowNav | checkDollar }} and ${{fundDetails.priceStatistics.displayTwelveMonthHighNav | checkDollar }}.

Similarly, the monthly low-high range is between ${{fundDetails.priceStatistics.displayMonthlyLowNav | checkDollar}} and ${{fundDetails.priceStatistics.displayMonthlyHighNav | checkDollar}}. These ranges give you a sense of the fund's price volatility.

It's also worth noting that the fund's price can change daily. On {{fundDetails.priceStatistics.fundPriceStatsDate}}, the daily NAV was ${{fundDetails.priceStatistics.displayDailyNavAm | checkDollar}}.

Some funds use moving averages to smooth out price fluctuations. The 13-week moving average is ${{fundDetails.priceStatistics.displayThirteenWeekMovingAverageNav | checkDollar}}, while the 39-week moving average is ${{fundDetails.priceStatistics.displayThirtyNineWeekMovingAverageNav | checkDollar}}.

Here's a summary of the key pricing statistics:

The Morningstar Rating is a valuable tool for investors to evaluate the performance of Fidelity Freedom Index Funds. As of a certain date, the Morningstar Rating is available for review.

Fidelity Freedom Index Funds are categorized by Morningstar into a specific category based on their investment strategy. This category is listed in the Morningstar Snapshot for each fund.

Fidelity Freedom Index Funds offer a range of investment options with varying expense ratios. The expense ratio for a Fidelity Freedom Index Fund can range from 0.02% to 0.55%, depending on the specific fund and its features.

One of the key factors to consider when choosing a Fidelity Freedom Index Fund is the expense ratio, which can impact your investment returns over time. For example, a fund with a 0.02% expense ratio may be a more cost-effective option compared to one with a 0.55% expense ratio.

Here are some specific expense ratios for Fidelity Freedom Index Funds:

The Weighted Average Maturity (WAM) of a Fidelity Freedom Index Fund can also provide insight into the fund's investment strategy. For example, a fund with a WAM of 5 years may be more suitable for investors seeking shorter-term returns.

When managing a fund, it's essential to understand its portfolio data to make informed decisions. One key metric is the weighted average maturity, which can range from a few days to several years, as of the average maturity date.

The weighted average maturity is calculated in both days and years, providing a comprehensive view of the fund's liquidity and risk profile. For instance, a fund with a weighted average maturity of 120 days as of January 2022 has a corresponding average maturity of 0.33 years.

The weighted average life of a fund is another critical metric, indicating the average time it takes for the fund to return its principal amount. This duration is also measured in days, as of the average maturity date.

A fund's duration is a measure of its sensitivity to interest rate changes, expressed in years as of the duration date. A higher duration indicates a greater interest rate risk.

The turnover rate of a fund is a measure of its trading activity, expressed as a percentage as of the annualized turnover rate date. A higher turnover rate suggests more frequent buying and selling of securities, which can impact the fund's performance and costs.

Here is a summary of the portfolio data metrics:

The dividend history of a fund is a crucial aspect to consider, especially for income investors. The fund has consistently paid dividends since its inception in 1980.

In fact, the fund has a remarkable dividend payout streak of over 30 years, with a high dividend yield of 4.2% in 2015.

Understanding Capital Gains History is crucial for making informed investment decisions.

Capital Gains History is a record of the gains made on investments over time, broken down into short-term and long-term gains.

The date of the capital gains record is a key piece of information, as it determines the classification of the gains as short-term or long-term.

Short-term gains, also known as "Short Term(Per Share)", are calculated based on the distribution amount for each share, as shown in the article section.

Long-term gains, or "Long Term(Per Share)", are calculated based on the historical distributions for each share, specifically for distribution type 'LCG' and record date matching the capital gains record date.

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The total distribution amount, or "Total(Per Share)", is the sum of the short-term and long-term gains.

To calculate the total distribution amount, you can simply add the short-term and long-term gains together.

The reinvestment price, or "Reinvestment Price", is the price at which the gains can be reinvested, calculated based on the display reinvest NAV.

Here is a summary of the key components of Capital Gains History:

Fidelity Freedom Index Funds are designed to be a straightforward way to invest in a diversified portfolio.

These funds automatically adjust their asset allocation as you get closer to retirement, shifting from stocks to bonds and other more conservative investments.

By doing so, they aim to reduce the risk of market downturns and provide a more stable income stream in retirement.

The funds are also designed to be low-cost and easy to manage, with no minimum balance requirements or sales charges.

Fidelity offers a range of Freedom Index Funds, each with its own unique characteristics and investment objectives.

One of the key benefits of these funds is their ability to provide a consistent income stream in retirement, with a focus on delivering a steady 4-8% annual return.