Understanding Fidelity Target Date Funds 2060 Investment Strategy

Fidelity Target Date Funds 2060 aim to help you reach your long-term financial goals by automatically adjusting their asset allocation as you get closer to your target retirement date.

These funds invest in a mix of stocks, bonds, and other securities that are designed to grow your money over time.

The investment strategy of Fidelity Target Date Funds 2060 is based on a glide path, which is a gradual shift from more aggressive to more conservative investments as the target date approaches.

As of the current year, the fund's asset allocation is approximately 88% stocks and 12% bonds.

Fidelity target date funds for 2060 have some key details worth noting.

The Fidelity Freedom 2060 Fund has a legal name that matches its target date, indicating it's designed to help investors retire around that year.

Its fund family name is Fidelity Group of Funds, which suggests a connection to the broader Fidelity financial services company.

The Fidelity Freedom 2060 Fund was launched on August 11, 2014, giving it a head start in terms of investment history.

Here are some key details about the Fidelity Freedom 2060 Fund and the Fidelity Sustainable Target Date 2060 Fund:

Both funds have a share class of "Other" and "K" respectively, indicating different types of shares available for investment.

The funds are domiciled in the US, which means they're subject to US regulations and oversight.

The Fidelity Freedom 2060 Fund is managed by Brett Sumsion, while the Fidelity Sustainable Target Date 2060 Fund does not have a listed manager.

The Fidelity Freedom Index 2060 Investor fund has a low expense ratio of 0.12%, which is 83% lower than its category average, earning it an A grade. This low expense ratio can help investors save money in the long run.

The fund's portfolio turnover rate is relatively low, at 13%, which means it holds its assets for around 0.1 years. In comparison, the average portfolio turnover rate for the Target-Date 2060 category is 23%.

Here's a breakdown of the fund's performance over different time periods:

In November 2024, the fund returned 3.6%, earning it a grade of D, as the Target-Date 2060 category had an average return of 4.0%.

The expense ratio of a fund measures how much of its assets are used for administrative expenses and operating expenses. The Fidelity Freedom Index 2060 Investor has an expense ratio of 0.12%, which is 83% lower than its category average, earning it an A grade.

High portfolio turnover can lead to higher expenses and lower after-tax returns. Fidelity Freedom Index 2060 Investor has a portfolio turnover rate of 13%, which is significantly lower than the average of 23% for the Target-Date 2060 category.

Here's a breakdown of the fees and expenses associated with Fidelity Freedom Index 2060 Investor:

The pricing of a fund is an essential aspect to consider when evaluating its performance and value. NAV, or Net Asset Value, is the current price of the fund's shares, which can fluctuate daily.

You'll often see the NAV listed with its date of calculation, along with the time it was determined. For example, the NAV might be $10.50 as of January 31st at 4:00 PM EST.

The fund's price can also be compared to its historical highs and lows over various time periods. The 12-month low and high, for instance, can give you a sense of the fund's overall performance over the past year.

Here's a quick snapshot of the fund's price history:

Additionally, you can see the fund's daily price, as well as its moving averages over 13 and 39 weeks. These averages can help smooth out short-term price fluctuations and give you a better sense of the fund's long-term trend.

The expense ratio is a key factor to consider when evaluating a fund's performance. It measures how much of a fund's assets are used for administrative expenses and operating expenses.

For FDKVX, the expense ratio is 0.75%, which is a relatively low rate compared to other funds in its category.

The 12b-1 fee, on the other hand, is not applicable for FDKVX.

Administrative fees are also not applicable for FDKVX, but for other funds, they can range from 0.01% to 0.30%.

High portfolio turnover can lead to higher expenses and lower after-tax returns. Fidelity Freedom Index 2060 Investor has a portfolio turnover rate of 13%, which is lower than the average portfolio turnover of 23% for the Target-Date 2060 category.

Here's a breakdown of the fees for FDKVX:

The Fidelity Freedom 2060 fund has a net asset value of $53.35 as of October 2022, a decrease from its peak of $56.51 in January 2022.

Investors can purchase shares of the Fidelity Freedom 2060 fund through various channels, including online, by phone, or through a financial advisor.

The yields and distributions of a Fidelity Target Date Fund 2060 are essential to understand, as they directly impact the returns you can expect from your investment. The 30-Day SEC Yield is a key metric to consider, and as of the latest data, it stands at 2.76% (although this may have changed since the data was last updated).

This yield is calculated based on the fund's net investment income over the past 30 days. It's essential to keep in mind that this is a short-term measure, and it's possible that the yield may fluctuate over time.

You can also look at the 30-Day SEC Yield without reductions, which is currently at 3.04% as of the same date. This metric gives you a sense of the fund's potential returns without any deductions.

Another important metric to consider is the 1-Month Distribution Yield, which is currently at 2.83% as of a specific date. This yield is calculated based on the fund's distributions over the past month.

The 12-Month Distribution Yield is also worth noting, with a current yield of 2.76% as of the same date. This metric provides a longer-term perspective on the fund's returns.

Here's a summary of the yields and distributions for your reference:

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