Fidelity Target Fund 2025: A Comprehensive Guide

Investing in the stock market can be a daunting task, especially if you're new to it. That's where target-date funds come in. Fidelity Target Fund 2025 is one such fund that can help you reach your retirement goals.

What is Fidelity Target Fund 2025?

Fidelity Target Fund 2025 is a mutual fund that automatically adjusts its asset allocation over time based on your expected retirement year. As you approach retirement, the fund gradually shifts from higher-risk investments (such as stocks) to lower-risk investments (such as bonds).

How Does Fidelity Target Fund 2025 Work?

• The fund is designed for investors who are planning to retire around 2025.
• It invests in a diversified portfolio of stocks, bonds, and other assets.
• The asset allocation is periodically rebalanced to reflect your age and risk tolerance.
• As you get closer to retirement, the fund will invest more in bonds and cash to reduce risk.

Benefits of Investing in Fidelity Target Fund 2025

There are many benefits to investing in Fidelity Target Fund 2025, including:

• Simplicity: Target-date funds are easy to invest in and manage. You don't need to make any investment decisions yourself.
• Diversification: Target-date funds invest in a wide range of assets, which helps to reduce your risk.
• Automatic rebalancing: The fund's asset allocation is automatically rebalanced over time, which helps to keep your portfolio on track.
• Low cost: Fidelity Target Fund 2025 has a low annual expense ratio of 0.15%, making it one of the most affordable target-date funds on the market.

Who is Fidelity Target Fund 2025 Right For?

Fidelity Target Fund 2025 is a good investment option for investors who:

• Are planning to retire around 2025.
• Want a simple and diversified investment solution.
• Are comfortable with a moderate level of risk.

How to Invest in Fidelity Target Fund 2025

Investing in Fidelity Target Fund 2025 is easy. You can open an account online or through a financial advisor. The minimum investment amount is \$250.

Performance of Fidelity Target Fund 2025

Fidelity Target Fund 2025 has performed well over the past 10 years. The fund has returned an average of 7.5% per year since its inception in 2005.

Risks of Investing in Fidelity Target Fund 2025

As with all investments, there are some risks associated with investing in Fidelity Target Fund 2025. These risks include:

• Market risk: The value of the fund's investments can fluctuate with the market.
• Interest rate risk: The fund's investments can be affected by changes in interest rates.
• Inflation risk: The fund's investments can be affected by inflation.

Alternatives to Fidelity Target Fund 2025

If Fidelity Target Fund 2025 isn't right for you, there are a number of other target-date funds available. Some popular alternatives include:

• Target Retirement 2025 Fund (Vanguard)
• Retirement 2025 Fund (Schwab)
• Fidelity Freedom Index 2025 Fund

Conclusion

Fidelity Target Fund 2025 can be a good investment option for investors who are planning to retire around 2025 and want a simple and diversified investment solution. However, it's important to understand the risks involved before investing.

Frequently Asked Questions

1. What is the expense ratio of Fidelity Target Fund 2025?

The expense ratio of Fidelity Target Fund 2025 is 0.15%.

2. What is the minimum investment amount?

The minimum investment amount is \$250.

3. How often is the fund's asset allocation rebalanced?

The fund's asset allocation is rebalanced annually.

4. What is the current yield of Fidelity Target Fund 2025?

The current yield of Fidelity Target Fund 2025 is 1.50%.

Additional Resources

• Fidelity Target Fund 2025: https://www.fidelity.com/fund-screener/fund/overview.jhtml?symbol=FIPTX
• Target-Date Funds: https://www.investopedia.com/articles/basics/08/targetdate.asp
• How to Choose a Target-Date Fund: https://www.thebalance.com/how-to-choose-a-target-date-fund-4058320