Fidelity 2025 Index Fund: A Comprehensive Guide

Introduction

The Fidelity 2025 Index Fund (symbol: FDKLX) is a passively managed target-date fund designed for investors who plan to retire around the year 2025. A target-date fund is a type of mutual fund that automatically adjusts its asset allocation based on the investor's expected retirement date.

Investment Objectives

The Fidelity 2025 Index Fund aims to provide investors with long-term growth of capital and income, while also preserving capital. The fund invests primarily in a blend of domestic and international stocks, bonds, and other fixed income securities.

Asset Allocation

The fund's asset allocation is designed to become more conservative over time as the investor approaches their target retirement date. As of December 31, 2022, the fund's asset allocation was as follows:

• Stocks: 80.5%
• Bonds: 18.5%
• Cash and other: 1.0%

Fees and Expenses

The Fidelity 2025 Index Fund has an expense ratio of 0.11%, which is below the average for target-date funds. The expense ratio is a fee that is charged by the fund to cover its operating costs, such as management fees and administrative expenses.

Performance

The Fidelity 2025 Index Fund has performed well over the past several years. Over the five-year period ending December 31, 2022, the fund returned an average of 10.6% per year.

Risk Considerations

All investments carry some degree of risk, and the Fidelity 2025 Index Fund is no exception. The fund's value can fluctuate significantly in response to market conditions. Investors should carefully consider their investment objectives and risk tolerance before investing in the fund.

Who Should Invest in the Fidelity 2025 Index Fund?

The Fidelity 2025 Index Fund is a good option for investors who are looking for a diversified, long-term investment that matches their target retirement date. The fund is also a good option for investors who are comfortable with a moderate level of risk.

Key Benefits of the Fidelity 2025 Index Fund

• Low expenses: The fund's expense ratio is below the average for target-date funds.
• Experienced management: The fund is managed by a team of experienced investment professionals.
• Diversified portfolio: The fund invests in a wide range of stocks, bonds, and other fixed income securities.
• Automatic asset allocation: The fund's asset allocation automatically adjusts over time as the investor approaches their target retirement date.

Conclusion

The Fidelity 2025 Index Fund is a well-managed, low-cost target-date fund that is a good option for investors who are planning to retire around the year 2025. The fund offers investors a diversified portfolio and automatic asset allocation, which can help them to meet their long-term financial goals.

Additional Information

• The Fidelity 2025 Index Fund is available for purchase through a variety of investment platforms, including Fidelity, Vanguard, and Charles Schwab.
• The fund's minimum investment amount is $2,500.
• The fund is not suitable for all investors. Investors should carefully consider their investment objectives and risk tolerance before investing in the fund.

FAQs

• What is a target-date fund?
  • A target-date fund is a type of mutual fund that automatically adjusts its asset allocation based on the investor's expected retirement date.

• What is the Fidelity 2025 Index Fund's investment objective?

  • The Fidelity 2025 Index Fund's investment objective is to provide investors with long-term growth of capital and income, while also preserving capital.

• What are the Fidelity 2025 Index Fund's fees and expenses?

  • The Fidelity 2025 Index Fund has an expense ratio of 0.11%.

• What is the Fidelity 2025 Index Fund's asset allocation?

  • As of December 31, 2022, the fund's asset allocation was as follows:

Stocks: 80.5%
Bonds: 18.5%
Cash and other: 1.0%
* Who should invest in the Fidelity 2025 Index Fund?
* The Fidelity 2025 Index Fund is a good option for investors who are looking for a diversified, long-term investment that matches their target retirement date.

Disclaimer

The information contained in this article is for informational purposes only and should not be construed as investment advice. Investors should consult with a qualified financial advisor before making any investment decisions.