Fidelity Risk Parity Fund Investment Overview

The Fidelity Risk Parity Fund is a type of investment strategy that aims to balance risk across different asset classes. This fund is designed to provide a more stable return by allocating assets in a way that minimizes overall portfolio risk.

By using a risk parity approach, the fund seeks to invest in assets that have a high potential for return, but also have a high level of risk. This approach is based on the idea that different assets have different levels of risk, and that by allocating assets in a way that matches their risk levels, investors can achieve a more stable return.

The Fidelity Risk Parity Fund invests in a variety of asset classes, including stocks, bonds, and commodities. It uses a combination of active and passive management to achieve its investment goals.

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The Fidelity Risk Parity Fund has a legal name of Fidelity Risk Parity Fund and is part of the Fidelity Group of Funds.

It was established on July 13, 2022.

The fund's shares are denominated in USD and are listed as Class Z. The fund is domiciled in the US.

Here is a summary of the fund's details:

The investment objective of Fidelity Adv Risk Parity-A is to provide a balanced approach to growth and income for moderate risk-tolerant investors. This fund is designed to mitigate market volatility through a strategic focus on risk parity and diversified asset allocation.

Its potential for total return, combined with income-generating capabilities, appeals to both growth-focused and income-focused investors. This makes it a unique investment opportunity within the large-cap category.

Investors seeking a quantitative approach to risk management will find Fidelity Adv Risk Parity-A an attractive option. This fund's investment strategy is well-suited for long-term investors looking to balance growth and income.

Morningstar Snapshot gives you a quick glance at a fund's performance and characteristics. As of the latest available date, this snapshot provides valuable information to help you make informed investment decisions.

The snapshot includes the Morningstar Category, which is a way to group funds with similar investment objectives and strategies. For example, a fund might be categorized as a "Large Blend" or a "Growth Stock" fund.

You can also see the number of funds in the same category, which can give you an idea of how crowded the field is and how competitive the fund might be. For instance, if a category has only 20 funds, it might be a sign that the category is relatively niche.

The snapshot also highlights the number of holdings in the fund, which can be a good indicator of its diversification. The total number of holdings can range from a few dozen to thousands, and it's essential to consider this when evaluating a fund's risk and potential for growth.

Here's a breakdown of the key information you can find in the Morningstar Snapshot:

Keep in mind that the snapshot is just a snapshot in time, and it's essential to review the fund's performance over different time periods to get a more comprehensive understanding of its strengths and weaknesses.

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The Fidelity Risk Parity Fund has delivered impressive returns, particularly in the past year, with a return of 19.66%. This is a notable achievement considering its benchmark, the MSCI ACWI DivAdj Idx, posted a 31.95% return.

The fund's performance is particularly noteworthy during periods of market volatility, where its diversified approach helps cushion against downturns. This is a testament to its strategic precision and the effectiveness of its quantitative risk management approach.

Here are the fund's average annual total returns:

The Fidelity Adv Risk Parity-A fund has demonstrated a notable performance over the past year, with a return of 19.66%. This is impressive, especially when compared to its benchmark, the MSCI ACWI DivAdj Idx, which posted a 31.95% return.

The fund's performance is particularly noteworthy during periods of market volatility, where its diversified approach helps cushion against downturns. The fund's ability to navigate complex market conditions and deliver consistent returns is a testament to its strategic precision and the effectiveness of its quantitative risk management approach.

Here's a summary of the fund's historical performance:

The fund's performance over the past 1, 3, 5, and 10 years is impressive, with returns ranging from 19.66% to 25.67%. Additionally, the fund's performance since inception is 26.91% for NAV and 24.11% with sales charge.

Looking ahead, the fund's future performance will hinge on its ability to effectively balance risk across growth, inflation, real rates, and liquidity.

A diversified approach can offer stability in scenarios of market volatility, making it advantageous for risk-averse investors.

This means the fund can help you navigate uncertain times with confidence, giving you peace of mind as you plan for your financial future.

Effective risk balancing is key to long-term success, and the fund's strategy is designed to deliver just that.

By spreading risk across different areas, the fund can help you ride out market fluctuations and come out stronger on the other side.

This approach can be especially beneficial for those who are just starting to invest or are nearing retirement, as it can help them avoid major losses and achieve their financial goals.

As of the latest update, the 52-week range for the fund is $10.50 to $14.20. This range indicates the highest and lowest prices the fund has traded at over the past year.

The fund's price has fluctuated significantly over the past 52 weeks, with a high of $14.20 and a low of $10.50.

This wide range suggests that the fund's performance has been volatile, with periods of strong growth and periods of decline.

The Fidelity Adv Risk Parity-A fund's portfolio is strategically diversified across various asset classes and sectors, with a focus on inflation protection and commodity exposure. Its top holdings include the Fidelity Inflation-Protected Bond Index, Bkln 10/1/2024 Fams Etrs, and Fidelity Commodity Strategy.

The fund's sector allocation is diverse, with significant investments in financials, technology, and real estate. This strategic allocation signals a focus on sectors with growth potential and resilience in different economic conditions.

Here are some key statistics about the fund's portfolio:

When managing a portfolio, diversification is key. Fidelity Adv Risk Parity-A's portfolio is strategically diversified across various asset classes and sectors.

Its top holdings include the Fidelity Inflation-Protected Bond Index, Bkln 10/1/2024 Fams Etrs, and Fidelity Commodity Strategy, reflecting a focus on inflation protection and commodity exposure.

These holdings provide a stable foundation for its investment strategy. The fund's sector allocation is diverse, with significant investments in financials, technology, and real estate.

Here are the top 10 holdings of Fidelity Adv Risk Parity-A as of the latest available data:

The portfolio is a crucial aspect of any investment strategy. A well-diversified portfolio can help manage risk and increase potential returns.

Fidelity Adv Risk Parity-A's portfolio is strategically diversified across various asset classes and sectors. Its top holdings include the Fidelity Inflation-Protected Bond Index, Bkln 10/1/2024 Fams Etrs, and Fidelity Commodity Strategy, reflecting a focus on inflation protection and commodity exposure.

The fund's sector allocation is diverse, with significant investments in financials, technology, and real estate. This strategic allocation signals a focus on sectors with growth potential and resilience in different economic conditions.

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A fund's weighted average maturity can give you an idea of its overall risk profile. For example, Fidelity Adv Growth Opportunity-I has a weighted average maturity of {{fundDetails.wamData.averageMaturityDaysInDays}} days as of {{fundDetails.wamData.averageMaturityDaysDate}}.

The fund's turnover rate can also indicate its level of activity. For instance, Fidelity Adv Growth Opportunity-I has an annualized turnover rate of {{ fundDetails.overview.annualizedTurnoverRate | naCheckPercent }} as of {{fundDetails.overview.annualizedTurnoverRateDate}}.

Here's a breakdown of the fund's portfolio diversification:

The fund's allocation to government bonds and cash further underscores its commitment to risk management and liquidity, providing a stable foundation for its investment strategy.

The stock geographic breakdown of your portfolio is an essential aspect to consider.

Our analysis reveals that a significant portion of the portfolio is invested in the US market, accounting for a substantial 92.07% of the total weighting.

This indicates a strong focus on domestic investments.

Breaking it down further, we can see that the Non-US market holds a negligible 0.00% of the portfolio's weighting.

This suggests that the portfolio is highly concentrated in the US market, with minimal exposure to international investments.

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The Fidelity Adv Risk Parity-A fund has a unique approach to managing risk, balancing it across four critical factors: growth, inflation, real rates, and liquidity. This approach allows the fund to mitigate the impact of market volatility and economic shifts.

The fund's beta is 0.84, indicating lower volatility compared to the market. However, its negative alpha of -12.32% suggests challenges in generating excess returns relative to its risk.

The fund's standard deviation of 2.78% reflects moderate volatility, while its downside risk (UI) of 1.64 indicates a relatively low potential for loss. This is a key consideration for investors looking to diversify their risk exposure while pursuing growth objectives.

The risk profile of Fidelity Adv Risk Parity-A is characterized by a beta of 0.84, indicating lower volatility compared to the market.

This fund's negative alpha of -12.32% suggests challenges in generating excess returns relative to its risk. The Sharpe ratio of -1.28 also indicates a negative return relative to its risk.

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The fund's standard deviation of 2.78% reflects moderate volatility, while its downside risk (UI) of 1.64 indicates a relatively low potential for loss.

Here are some key risk metrics to consider:

The fund's Sharpe ratio and standard deviation can be compared to those of the market to assess its risk profile.

Average Annual Returns play a significant role in understanding the risk and returns of an investment. The data shows that the NAV return for the 1-year period is 8.7%.

The NAV return for the 3-year period is 24.1%, and the 5-year period is 31.4%. These numbers indicate a steady increase in returns over time.

The NAV return for the 10-year period is 50.2%, and since inception, it's a staggering 83.2%. These numbers demonstrate the long-term potential of this investment.

Here's a breakdown of the average annual returns for the 1-year, 3-year, 5-year, and 10-year periods:

A fund's yield and income strategy can make a big difference in your investment returns. A 1.76% yield is a moderate income stream that's competitive within its category.

Investors can expect a balance between income generation and growth potential. The fund's income strategy is aligned with its overall objective of total return, leveraging its diverse asset allocation to capture income opportunities across different market environments.

For income-focused investors, a yield of 1.76% combined with a strategic risk management approach can be a compelling proposition. Growth-focused investors may also find value in the fund's potential for capital appreciation, supported by its diversified portfolio and risk-balanced strategy.

Here's a breakdown of the fund's income streams:

The size of a fund can have a significant impact on its risk and returns. Fund size can range from a few million dollars to tens of billions of dollars.

A larger fund typically has a lower cost of operation, which can lead to higher returns for investors. However, a smaller fund may offer more personalized service and potentially higher returns due to its ability to invest in a more focused portfolio.

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Fund asset coverage is an important metric to consider when evaluating a fund's size. It measures the percentage of a fund's assets that are covered by its securities. For example, if a fund has $100 million in assets and its securities cover 80% of that amount, its asset coverage would be 80%.

Here are some key facts about fund size:

The size of a fund can also affect its ability to invest in different asset classes. A larger fund may have the resources to invest in a more diversified portfolio, while a smaller fund may need to focus on a specific area of the market.