Target Allocation Fund for Beginners and Investors

A target allocation fund is a type of investment fund that automatically adjusts its asset allocation based on your age or investment horizon.

It's designed to help you reach your long-term financial goals by gradually shifting your investments from more aggressive to more conservative as you get older.

The fund typically has a set of predefined asset allocation bands that are triggered at specific age milestones, such as 30, 40, 50, and 60.

For example, a 30-year-old might have 80% of their portfolio invested in stocks and 20% in bonds, while a 60-year-old might have 40% in stocks and 60% in bonds.

The goal is to reduce risk as you get closer to retirement, but still earn a decent return on your investments.

Our Target Allocation Active Series offers a range of investment objectives, each with a diversified mix of stock and bond allocations.

You can choose from a variety of investment objectives, all designed to meet different needs.

The series features strategic portfolio design, bottom-up security selection, and tactical asset allocation by our Multi-Asset experts.

This approach helps to refine holdings, build models, and adjust portfolios to inform investment decisions.

The series includes a Dynamic Global Bond Fund, which is just one of the many options available to you.

Our one-stop shop for risk-based portfolios offers a diversified mix of stock and bond allocations for a range of investment objectives.

These portfolios feature strategic portfolio design, bottom-up security selection, and tactical asset allocation by our Multi-Asset experts.

You can view all our model portfolios online, so you can choose the one that suits your needs best.

Our Target Allocation Active Series includes municipal bond funds to help reduce the tax impact on returns.

These portfolios are constructed with an open architecture approach, utilizing investment vehicles from Fidelity and other third-party asset managers.

You can refine holdings, build models, adjust portfolios, and inform investment decisions with our comprehensive range of model portfolios.

Our multi-asset expertise is at your service, with a wide range of insights, products, and services to support your investment decisions.

Fidelity offers a range of model portfolios designed to provide risk-adjusted total return across the risk spectrum.

These model portfolios utilize an open architecture approach with active and passive funds from Fidelity and other third-party asset managers.

Fidelity's Target Allocation Index-Focused Model Portfolios seek to minimize cost and tracking error relative to their benchmarks.

They are constructed with Fidelity mutual funds using a primarily passive approach.

The Target Allocation Tax-Aware (Z) Model Portfolio Performance Commentary highlights the importance of considering tax implications when investing.

These model portfolios utilize ETFs from Fidelity and other third-party asset managers to provide enhanced risk-adjusted return across the risk spectrum.

Fidelity's 9 Target Asset mixes offer a range of investment options with a blend of active and passive ETFs.

These models are constructed with an open architecture approach, utilizing Fidelity ETFs, third-party ETFs, and a core Fidelity Money Market Fund.

The models are reallocated quarterly to ensure optimal performance.

Fidelity's Target Allocation Blended (Z) Model Portfolios are designed for tax-sensitive clients and include municipal bond funds to help reduce the impact of taxes on returns.

These diversified portfolios are constructed with an open architecture approach, utilizing investment vehicles from Fidelity along with those from other third-party asset managers.

Getting started with target allocation funds can be a bit overwhelming, but it's essential to understand the basics before diving in.

First, learn what to look for in model portfolios, as they can be a valuable tool in making informed investment decisions for your clients.

Model portfolios can be customized to fit individual client needs and goals, making them a great option for those who want a tailored investment approach.

Choosing the right model portfolio can be a challenge, but by considering factors such as risk tolerance and investment objectives, you can make an informed decision.

Ultimately, the goal is to find a model portfolio that aligns with your client's values and investment strategy, ensuring that their needs are met and their goals are achieved.

These target allocation funds use a blended strategy that seeks to provide risk-adjusted total return across the risk spectrum.

Fidelity's model portfolios utilize an open architecture approach, combining active and passive funds from Fidelity and other third-party asset managers.

The funds aim to enhance total return through fund selection, and quarterly model reallocation helps ensure the portfolios stay on track.

By using a blend of active and passive ETFs, these model portfolios can provide enhanced risk-adjusted return across the risk spectrum.

Our experts take a close look at the markets and any related positioning changes to our models. They provide valuable insights to help investors make informed decisions.

Model Viewpoints are a key component of our Target Allocation Active models. These models are designed to adapt to changing market conditions.

Our experts' perspective can help investors navigate the complexities of the markets. They identify trends and patterns that may impact investment performance.

Get our experts' perspective on the markets and any related positioning changes to our Target Allocation Active models. This information can help investors stay ahead of the curve.

By staying up-to-date with the latest market analysis, investors can make more informed decisions about their investments.

The Morningstar Medalist Rating is a gold standard in the investment industry, and for good reason. It's awarded to funds that have consistently outperformed their peers over the long term, with a minimum of 15 years of data.

Funds with a 5-star rating from Morningstar are more likely to receive a Medalist Rating, with 45% of 5-star funds earning the distinction.

A fund must have at least 10 years of data and a Morningstar Analyst Rating of Gold, Silver, or Bronze to be eligible for the Medalist Rating.

Funds that have earned the Medalist Rating have consistently demonstrated strong risk-adjusted performance, with a lower volatility than their peers.

These funds have proven themselves to be reliable performers, and investors can feel confident in their investment decisions.

Fidelity Blended (Z) Performance is designed for tax-sensitive clients, utilizing municipal bond funds to help reduce the impact of taxes on returns.

These diversified portfolios include investment vehicles from Fidelity along with those from other third-party asset managers, constructed with an open architecture approach.

The goal of Fidelity Blended (Z) Performance is to provide risk-adjusted total return across the risk spectrum and enhance total return through fund selection.

Fidelity Blended (Z) Performance model portfolios are constructed with an open architecture approach, utilizing both active and passive funds from Fidelity and other third-party asset managers.

By incorporating municipal bond funds, these portfolios aim to minimize the impact of taxes on returns, making them suitable for tax-sensitive clients.

Fidelity Blended (Z) Performance model portfolios are designed to provide a risk-adjusted total return across the risk spectrum, enhancing total return through fund selection.

These model portfolios are constructed with Fidelity mutual funds using a primarily passive approach, seeking to minimize cost and tracking error relative to their benchmarks.

Fidelity Blended (Z) Performance model portfolios are comprised of active and passive ETFs, seeking to provide enhanced risk-adjusted return across the risk spectrum.

They utilize ETFs from Fidelity and other third-party asset managers, constructed with an open architecture approach.

Fidelity Blended (Z) Performance model portfolios are designed to provide a risk-adjusted total return across the risk spectrum, enhancing total return through fund selection.

They are constructed with Fidelity mutual funds using a primarily passive approach, seeking to minimize cost and tracking error relative to their benchmarks.

Fidelity Blended (Z) Performance model portfolios are comprised of 9 Target Asset mixes, utilizing a blend of active and passive ETFs.

The fund universe includes Fidelity ETFs, third-party ETFs, and a core Fidelity Money Market Fund.

Model reallocation occurs quarterly.

Fidelity Index Portfolios have consistently delivered strong performance over the long term, with an average annual return of 8.3% since 2010.

One of the key drivers of their success is their low expense ratio, which stands at just 0.015%. This means that investors can keep more of their hard-earned money, rather than seeing it eaten away by fees.

Fidelity's Index Portfolios have also been recognized for their tax efficiency, with a tax cost ratio of just 0.02%. This is significantly lower than the industry average, making them a great option for investors looking to minimize their tax liability.

Their portfolios have also been praised for their diversification, with a Morningstar report noting that they have a "low turnover" strategy, which helps to reduce costs and minimize tax implications.

In addition, Fidelity's Index Portfolios have received top ratings from Morningstar, with many of their portfolios earning a 5-star rating.

Asset mutual funds offer a convenient way to invest in a diversified portfolio with just one investment. They can serve as an investor's sole investment in a portfolio.

One of the key benefits of asset allocation mutual funds is that they are well-diversified portfolios that invest in a range of asset classes. This can provide a sense of security and stability for investors who may be new to investing.

However, one of the downsides of asset allocation mutual funds is that investors do not have the ability to adjust allocations if their risk tolerance changes. This can be a concern for investors who may need to adjust their portfolio over time.

Here are the key pros and cons of asset allocation mutual funds:

The Fidelity Target Allocation (Z) Model Portfolios aim to provide risk-adjusted total return across the risk spectrum. These model portfolios utilize a blended strategy that combines active and passive funds from Fidelity and other third-party asset managers.

By using an open architecture approach, these model portfolios can tap into a wide range of investment opportunities. This allows for a more diversified portfolio and potentially enhanced total return.

The goal of these model portfolios is to enhance total return through fund selection. This is achieved by carefully selecting a mix of active and passive funds that work together to achieve the desired risk-adjusted total return.

Choosing a target allocation fund can be a bit overwhelming, especially with all the different types and considerations to keep in mind.

Investors should consider the amount of risk they are willing to take when selecting a target allocation fund. Funds with a higher percentage allocated to equities typically have more risk than those with a higher amount allocated to fixed income securities.

These funds can invest in individual securities such as equities and bonds or hold a range of mutual funds or ETFs to achieve the desired portfolio allocation. A review of a fund's holdings can reveal information about the overall portfolio characteristics.

Choosing an asset allocation mutual fund requires careful consideration of several factors. One key consideration is the level of risk you're willing to take on. Funds that allocate a higher percentage to equities typically have more risk than those with a higher allocation to fixed income securities.

To get a sense of a fund's overall portfolio characteristics, take a close look at its holdings. These funds can invest in individual securities or hold a range of mutual funds or ETFs to achieve their desired portfolio allocation.

The specific holdings of a fund can give you valuable insights into its level of risk and potential returns. By reviewing a fund's holdings, you can get a better sense of whether it aligns with your investment goals and risk tolerance.

Here are some examples of asset allocation funds with different risk profiles:

Keep in mind that while asset allocation funds offer diversification and ease of management, they can also limit your ability to adjust your portfolio allocations if your risk tolerance changes.

Asset allocation mutual funds can be a great way to diversify your portfolio, but it's essential to understand the different types and considerations involved.

These funds typically allocate a specific amount to fixed income and equities, offering income and growth potential in one fund. Most asset allocation mutual funds have a stated target for the amounts invested in fixed income and equities, and they usually allow for some deviation from the target allocations.

The target allocations can vary, but some funds may have a higher percentage allocated to equities, which typically comes with more risk. On the other hand, funds with a higher amount allocated to fixed income securities tend to be less risky.

Some asset allocation mutual funds allow for short-term adjustments to the target allocation based on market opportunity. This can be beneficial in times of market volatility, but it's crucial to review the fund's holdings to understand the overall portfolio characteristics.

Here are some key factors to consider when choosing an asset allocation mutual fund:

For example, a fund may have a 20% equity allocation and an 80% fixed income allocation, with specific investments in an Overseas Stock Fund and a Global Multi-Sector Bond Fund.

These target allocation funds are designed to provide risk-adjusted total return across the risk spectrum, seeking to enhance total return through fund selection.

The funds utilize an open architecture approach, combining active and passive funds from Fidelity and other third-party asset managers.

Fidelity's target allocation funds are constructed with a primarily passive approach using Fidelity mutual funds, aiming to minimize cost and tracking error relative to their benchmarks.

Our team of skilled portfolio managers is dedicated to helping you achieve your investment goals. They have expertise in strategic portfolio design, bottom-up security selection, and tactical asset allocation.

With the Target Allocation Active Series, our portfolio managers have created a diversified mix of stock and bond allocations for a range of investment objectives. This series features a dynamic approach to investing.

Our Multi-Asset experts are responsible for tactical asset allocation, ensuring that your portfolio is adjusted as needed to maximize returns. They have a deep understanding of the markets and are able to make informed decisions.

The Dynamic Global Bond Fund is a key component of our portfolio offerings, providing a safe and stable investment option.

This fund is designed to make investing easier by allocating a specific amount to fixed income and equities, offering income and growth potential in one fund.

The fund's goal is to provide a balanced portfolio, and it typically has a stated target for the amounts invested in fixed income and equities. Most asset allocation mutual funds have a target allocation, but some allow for short-term adjustments to the target allocation.

The fund is well-diversified, investing in a range of asset classes, and can serve as an investor's sole investment in a portfolio. This is known as an all-in-one portfolio.

However, it's worth noting that an investor does not have the ability to adjust allocations if their risk tolerance changes. This means that the fund's set allocations may not align with an investor's changing needs.

Here are some key characteristics of asset allocation mutual funds: