Fidelity Investment Returns: Understanding Performance and Stability

Fidelity's long-term investment returns have consistently outperformed the market, with a 10-year average annual return of 10.3% for its flagship fund.

Fidelity's investment strategy focuses on stability and growth, with a mix of low-risk and high-risk investments to balance returns and minimize losses.

Investors can expect to see returns in the range of 4-7% per year for conservative investment options, such as money market funds and short-term bond funds.

Fidelity's investment returns have been influenced by market fluctuations, but the company's long-term approach has helped to smooth out these fluctuations and provide steady returns to investors.

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Investment Performance is a crucial aspect of any investment strategy. Daily pricing for all Fidelity Funds is available, allowing you to view the net asset value (NAV) as of the last trading date.

You can also view quarterly commentary for Fidelity Funds to understand what drove performance for over 100 Fidelity Funds last quarter. This information can help you make informed decisions about your investments.

Past performance, however, is no guarantee of future results, so it's essential to consider multiple factors when evaluating investment performance.

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You can view the daily pricing for all Fidelity Funds, including the net asset value (NAV) as of the last trading date.

Fidelity provides quarterly commentary for its funds, offering insights into what drove performance for over 100 of its funds in the last quarter.

Past performance is no guarantee of future results, a reminder that investment decisions should be made with caution.

The daily pricing information is easily accessible, allowing investors to stay up-to-date on the value of their investments.

Fidelity's quarterly commentary is a valuable resource for investors looking to understand the factors that influenced fund performance.

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Managing your Fidelity investments requires attention to detail, and one crucial aspect is account management. Fidelity offers a variety of account types to suit different needs.

To get started, you can open a brokerage account, IRA, or retirement account, all of which can be managed online or through the Fidelity mobile app. This allows you to track your investments and make changes as needed.

Regularly reviewing your account statements and investment holdings can help you stay on top of your portfolio's performance.

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You can easily access your performance reporting information in various ways. You can get a paper copy of your performance reporting information, which is a great option if you prefer a physical record.

If you're more tech-savvy, you can download your performance data into a spreadsheet, allowing you to analyze and manipulate the numbers as you see fit.

Some users may be curious about the performance calculation on their statement, and the good news is that this is possible.

The Total Portfolio Return calculation is a comprehensive way to view your investments, but you might be wondering which accounts are included. It includes all of your Fidelity Brokerage accounts.

You can also expect to see your other accounts that you have access to view or trade included in the calculation. This is a convenient feature, especially if you have multiple accounts with Fidelity.

Workplace Savings Accounts, on the other hand, are excluded from the Total Portfolio Return. This is something to keep in mind if you have a 401(k) or similar account through your employer.

Brokerage Flex, Brokerage Link, and certain Insurance/Annuity accounts are also excluded. It's worth noting that these types of accounts often have their own unique features and requirements.

The differences between your monthly statement and Performance Reporting figures can be confusing, but it's actually quite simple once you understand why they're different. The standard performance calculation, also known as your "Personal Rate of Return", uses transaction data differently than your monthly statement.

This can result in different results, as explained in the example where the performance calculation uses transaction data differently than the monthly statement. The standard performance calculation may give a different result than what you see on your monthly statement.

One example of this difference is the way transaction data is used in the performance calculation. The standard performance calculation uses transaction data to calculate your Personal Rate of Return, which may not match the numbers on your monthly statement.

Your monthly statement and Performance Reporting figures may not match because of the way transaction data is used in the performance calculation. This can be frustrating, but understanding why it's happening can help you make sense of it.

The reason for this difference is that the performance calculation uses a specific method to calculate your Personal Rate of Return, which may not align with the numbers on your monthly statement.

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Stock Plan Service activities can significantly impact your investment returns at Fidelity. The performance of your Stock Plan Service activity is measured from the time of purchase, exercise, or vesting.

The type of Stock Plan Service activity you have will determine how it affects your Personal Rate of Return. For example, if you have a Stock Option Plan, the grant price will be used to calculate your performance.

Here are the different types of Stock Plan Service activities and how they are measured:

The size of your Stock Plan Service activity compared to your overall account or portfolio will also impact its significance. A larger Stock Plan Service activity will have a greater impact on your investment returns.

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Fidelity uses a historical conversion process to load transaction, market value, and pricing data, which can lead to differences in the way transactions are treated before and after October 31, 2008.

These differences are mainly due to the complexity of the calculations, which made it difficult to use the accrual basis methodology for performance reporting purposes.

For fixed income interest accrual and payments, Fidelity uses the cash basis methodology to report interest earnings on fixed income securities, whereas post-conversion, both accrual and cash basis methodologies are used.

Deposits and withdrawals are also aggregated differently, with historical data using a single monthly deposit assumed to occur on the 15th of each month and a single monthly withdrawal assumed to occur on the 16th of each month, whereas daily data is used post-conversion.

Here's a summary of the differences in treatment:

When evaluating historical performance, it's essential to understand the difference between Annualized and Cumulative Returns.

Annualized Return shows how much your investments have grown or declined – on average – over each year of a multi-year period.

Fidelity Fund Performance reports can provide valuable insights into Annualized Returns, helping you make informed investment decisions.

Cumulative Return, on the other hand, shows how much your investments have grown or declined – in total – over a multi-year period.

This means that Cumulative Return takes into account the full extent of your investment's performance, regardless of the time frame.

Fidelity Funds offer over 100 options to choose from, each with its own unique performance history, making it crucial to understand the difference between Annualized and Cumulative Returns.

Annualized Return is particularly useful when comparing the performance of different funds over varying time periods, as it provides a more accurate picture of their average growth or decline.

Index Funds, such as those offered by Fidelity, are a great example of how Annualized Return can be used to evaluate performance.

Prior to October 31, 2008, historical performance figures were calculated differently due to a historical conversion process used to load transaction, market value, and pricing data.

This process was necessary to provide as much historical performance information as possible, but it resulted in differences between the way transactions were treated before and after October 31, 2008.

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Fixed income interest accrual and payments were reported on a cash basis methodology, which means interest earnings on fixed income securities were reported as income and added to market value upon the payment date.

In contrast, performance reporting currently uses both the accrual and cash basis methodology for including fixed income interest in the performance calculation.

For annuity contracts prior to January 31, 2012, the same cash basis methodology was used.

This means that interest is not accrued and reported for each month that the security is held, but rather recorded upon payment.

Here's a breakdown of the differences in treatment:

Deposits and withdrawals were not aggregated daily prior to October 31, 2008, which means that the performance calculation may not reflect the actual timing of these transactions.

Selecting the right benchmark is crucial to evaluate the performance of your investments. It helps put your return in context by comparing it to the performance of similar investments.

To choose a benchmark, consider the segments of the overall market that you're most heavily invested in. You can select from 26 single market and blended benchmarks, including the Barclays Municipal Bond Index for municipal bonds or the "Aggressive Growth" blended benchmark for accounts with a mix of stocks and bonds.

For instance, if your account is 85% stocks and 15% bonds, selecting the "Aggressive Growth" blended benchmark might be a better fit. Fidelity customers can also use the Guided Portfolio Summary tool to determine their current asset allocation and make informed decisions.

To show your benchmarks, you can view the default benchmarks returns in the Compare Your Returns to the Market section at the bottom of the performance page. You can also add or modify benchmarks by clicking Change/Add Market Indexes.

Here are some common reasons why your returns might be below the benchmark index:

If you're unsure why your returns are below the benchmark index, consider re-evaluating your investment strategy and selecting a more suitable benchmark.

Morningstar Category Risk is a crucial factor to consider when evaluating a fund's risk level, with scores ranging from 1 for low-risk funds to 10 for high-risk funds. This score is calculated by comparing the annualized return for each fund category to the return of the 90-day U.S. Treasury bill over a 3-year period.

A 3-Year Sharpe Ratio is a measure of adjusted performance over a 3-year period, calculated by dividing the fund's excess returns by the standard deviation of those returns. The higher the ratio, the better the fund's return relative to the level of risk it's assuming.

Standard Deviation measures how much a fund's return varies over an extended period of time, with a higher standard deviation indicating a wider variation of past returns and thus greater historical volatility.

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The Risk Tab is a crucial section to understand when evaluating a fund's performance. It helps you gauge the level of risk associated with investing in that fund.

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Morningstar Category is a useful tool that groups funds based on the types of securities they invest in. This makes it easier to compare funds within the same category.

The Morningstar Category Risk score ranges from 1 to 10, with 1 being the lowest risk and 10 being the highest. This score is calculated by comparing the fund's returns to the 90-day U.S. Treasury bill over a 3-year period.

A fund's Standard Deviation measures how much its return varies over time. A higher standard deviation indicates greater historical volatility.

Here's a breakdown of the key metrics to look for in the Risk Tab:

A fund's Beta score indicates its sensitivity to market movements. A Beta score less than 1.0 means the fund is less sensitive to market movements, while a score greater than 1.0 means it's more sensitive.

The 3-Year Sharpe Ratio is a measure of adjusted performance over a 3-year period. It's calculated by dividing the fund's excess returns by the standard deviation of those returns.

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When comparing bond funds, it's essential to look at their income characteristics. Here are some key factors to consider:

The Name of the fund, including the management company, is a crucial piece of information. This will help you understand who is managing the fund and what their investment philosophy is.

Morningstar Category is a useful tool for grouping funds based on the types of securities they invest in. This makes it easier to compare funds that have similar investment objectives.

Funds with longer average maturities are generally more sensitive to changes in interest rates. This is because longer-term bonds are more affected by changes in interest rates than shorter-term bonds.

Average Duration helps measure a bond fund's sensitivity to changes in interest rates. The greater the duration of a bond, the greater its volatility in response to rising or falling rates.

The 30-Day SEC Yield measures the dividends and interest paid by a bond fund over the most recent 30-day period, after any fund expenses are deducted. This gives you an idea of the fund's current income.

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Here are some key income characteristics to look for in a bond fund:

Last Dividend is the ratio of the interest rate paid by a bond fund to its net asset value. This gives you an idea of the fund's current income relative to its net asset value.

Fidelity offers a wide range of fixed income investment options, with 24 of their fixed income funds earning 4- or 5-stars from Morningstar.

Their fixed income funds have received top ratings from Morningstar, with 8 funds earning a GOLD Morningstar Analyst rating. This suggests that Fidelity's fixed income investments are well-regarded by industry experts.

Fidelity Total Bond Fund is a notable example, with a "bond multivitamin" approach that offers broad exposure to government and investment-grade corporate bonds, as well as opportunistic high-yield investments.

Here are some key benefits of Fidelity's fixed income investments:

The fund managers behind Fidelity Total Bond Fund, including Ford O'Neil, have won awards for their expertise, with O'Neil and his co-managers taking home the coveted Morningstar 2016 U.S. Fixed-Income Fund Manager of the Year award.

Fixed income investments are a crucial part of a diversified portfolio, and Fidelity is a great option for investors seeking stability and returns.

Fidelity offers a wide range of fixed income funds, with 24 of them earning 4- or 5-stars from Morningstar. These highly-rated funds demonstrate Fidelity's expertise in managing fixed income investments.

Fidelity's fixed income funds have also been recognized by Kiplinger, with 2 of 7 funds mentioned in their 25 Favorite No-Load Funds for 2017 being managed by Fidelity.

The success of Fidelity's fixed income funds can be attributed to their experienced portfolio managers, such as Ford O'Neil, who won the coveted Morningstar 2016 U.S. Fixed-Income Fund Manager of the Year award.

Here are some key benefits of investing in Fidelity's fixed income funds:

Fidelity's fixed income funds are a great option for investors seeking stability and returns, and their experienced portfolio managers are committed to delivering results.

The Fidelity Intermediate Municipal Income Fund (FLTMX) is a great option for investors seeking a balance between income and capital preservation.

Fund manager Mark Sommer is responsible for creating a diversified portfolio of municipal bonds with moderate interest rate sensitivity.

One of the key strategies the fund is pursuing is emphasizing hospitals that are attractive acquisition candidates.

The fund is also managing with a heightened awareness of potential market liquidity challenges.

Here are three strategies the fund is using to achieve its goals:

The fees charged by a fund can have a significant impact on your investment returns.

A fund's expenses can be broken down into several categories.

The expense ratio is a key factor to consider when evaluating a fund's fees. The expense ratio (gross) is the total annual fund or class operating expenses paid by the fund and stated as a percent of the fund's total net assets.

Some funds may charge a load, which is a front-end or back-end sales charge. This is indicated by a "Yes" or "No" in the Management & Fees tab.

Transaction fees can also apply, and this is indicated by "NTF" in the Management & Fees tab.

Here's a breakdown of some of the key fees you might encounter:

The management company's tenure can also be an important factor in evaluating a fund's management. A longer tenure can indicate more stability and experience.