Top Retirement Investment Funds from Fidelity

Planning for retirement is crucial, and choosing the right investment options can make a significant difference. Mutual funds remain a preferred choice for many due to their diversification and professional management. However, selecting the appropriate fund requires careful evaluation to minimize risks and maximize returns. Fidelity, known for its active management and robust research teams, offers a range of mutual funds favored by retirees seeking stability and growth.

Recommended Fidelity Funds for Retirees
While Fidelity offers numerous mutual funds, certain options stand out for those preparing for retirement:

• Fidelity Multi-Asset Index Fund (FFNOX)
  A top recommendation among Fidelity funds for retirees, FFNOX invests in seven bond index funds and Fidelity stocks, ensuring broad diversification. Its expense ratio is 0.13%, with three-year average returns of 5.03%, an annual return of 8.46% over one year, and a 12.72% gain YTD.

• Fidelity Growth Discovery Fund (FDSVX)
  Known for higher-yield potential, FDSVX caters to investors willing to pay a premium for growth. The fund thrived during the past decade's stable economy, emphasizing growth stocks. It has an expense ratio of 0.67%, with three-year average returns at 7.60%, one-year returns at 15.61%, and a decade-long annualized return of 15.2%.

• Fidelity Nasdaq Composite Index Fund (FNCMX)
  This fund closely tracks the Nasdaq’s performance, with around 80% of assets invested in Nasdaq-listed companies. Its expense ratio is 0.37%, offering an average annual return of 6.61% over three years, 18.37% over one year, and 37.58% YTD.

• Fidelity Large-Cap Growth Index Fund (FSPGX)
  Investing about 80% of its assets in the Russell 1000 Growth Index, this fund focuses on large-cap growth stocks. With an expense ratio as low as 0.035%, it has returned 18.53% annually over three years, with -10.91% last year, and 13.64% YTD.

• Fidelity Total Market Index Fund (FSKAX)
  This fund tracks the total U.S. equity market, allocating 80% of assets to stocks in the Dow Jones U.S. Total Stock Market Index. Its very low expense ratio of 0.015% yields an average annual return of 9.07% over three years, 8.42% over one year, and 19.08% YTD.

• Fidelity US Sustainability Index Fund (FITLX)
  Tracking the MSCI USA ESG Index, FITLX invests in large- and mid-cap companies with strong social and environmental practices. Its expense ratio is 0.11%, with three-year returns at 10.63%, one-year at 12.47%, and 22.99% YTD.

• Fidelity 500 Index Fund (FXAIX)
  Designed to mirror the S&P 500’s performance, FXAIX invests about 80% of assets in S&P 500 stocks. Its expense ratio is just 0.015%, with annual returns of 10.35% over three years, 10.14% over one year, and 20.28% YTD.