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Income-Producing Fidelity Fund Picks®

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

*Automatically prefills an additional screen to the FundPicks selection criteria. Results are limited to FundPicks and funds with an SEC yield greater than 1%.

SEC yield: A standard yield calculation developed by the Securities and Exchange Commission for bond funds. The yield is calculated by dividing the net investment income per share earned during the day period by the maximum offering price per share on the last day of the period. The yield figure reflects the dividends and interest earned during the day period, after the deduction of the fund's expenses. It is sometimes referred to as "SEC Day Yield" or "standardized yield".

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal. High yield/non-investment grade bonds involve greater price volatility and risk of default than investment grade bonds. The securities of smaller, less well-known companies can be more volatile than those of larger companies.

Growth stocks can perform differently from the market as a whole and other types of stocks and can be more volatile than other types of stocks.

Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time.

Diversification and asset allocation do not ensure a profit or guarantee against loss.

Investing in municipal bonds for the purpose of generating tax-exempt income may not be appropriate for investors in all tax brackets.

Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets.

Sours: https://www.fidelity.com/mutual-funds/mutual-fund-spotlights/income-producing-fidelity-funds

Best Fidelity Funds for Dividends

Fidelity offers many types of funds that create quick and steady income for their buyers, in the form of dividend mutual funds. As with other mutual funds, you can invest in these to grow your money over time, but with the added perk that you'll also see payouts from dividends on a regular basis. Fidelity's best dividend funds will work toward both your long-term and short-term goals. It will earn interest on funds over time and add an extra boost of cash each quarter to your current income.

Find out if dividend mutual funds are right for you, and which Fidelity funds best fit your income goals.

Why Invest in Dividend Mutual Funds

When you invest in a standard mutual fund, your money is added to a larger pool of money from all of the fund's investors. This sum is then used to purchase stocks, bonds, or other assets. All of these holdings make up a single portfolio that is managed by those experts who know the market.

Letting a professional manage your funds can take the pressure and work off of you. This is one of the main reasons people invest in mutual funds. A diverse portfolio of holdings is also a safe and steady way to grow money in the long term, but you won't always see these profits on a regular basis, or in cash form.

If you're interested in both long-term growth and more income at recurring intervals, dividend funds might be right for you.

How Do Dividend Funds Work?

A dividend fund is a type of mutual fund that invests solely in stock equity. Most often, high-quality and publicly traded stock from large companies. In investing terms, these are known as "large-cap" or "big-cap" stocks. This means they are widely purchased and valued at over $10 billion in the market. These companies have been around for a while, so they tend to be consistent, and they tend to treat their shareholders well by making payouts each quarter.

Dividend mutual funds are often categorized with other value stock funds. This means their value outweighs their current price. They tend to be less aggressive than growth stock mutual funds.

When you invest in dividend funds, you're buying shares of profits from a group of companies that perform well over time. Though payouts may vary slightly, you can expect that each quarter you'll receive a share of the pool of dividends as a cash payout. You then have the option to keep the cash or invest it back into the fund (which helps build long-term growth). Most funds will default to the reinvest option, so in order to receive income, you have to opt in by checking a box or signing a contract to elect to receive the payments.

Whom Are Dividend Funds For?

Since dividend mutual funds are a mostly safe and passive way to grow income, they are a popular choice for retired investors. Investors who are looking for long-term growth can choose not to take the cash payout and instead use their share of dividends to reinvest and buy more shares of the fund.

Dividend mutual funds are also good options if you're just starting to invest, as you don't need to know a lot about the market. For people who are learning, the risk of losing your money is low, but you'll still have some control over your cash flow because you get to make choices and see results.

3 Best Fidelity Funds for Dividends

When picking the best Fidelity funds for dividends, savvy investors know to look at the fund's day SEC Yield. This is also called the "day yield" or "SEC yield." This figure will tell you how much a fund earned during the last calendar month, minus expenses. It doesn't translate directly to how much you'll see as a payout, since each fund works differently, but it offers a small look at total returns. The SEC yield is measured against other stocks or mutual funds, so a fund with a high yield is above average when compared to other funds of its kind during the last term, and it is likely to pay out more.

To assess funds is more of an art than a science. Professional investors look at a range of metrics to predict how a stock (or fund) might perform, including the SEC yield, distribution yield, annual returns, and shareholder reports. The key thing is to make sure your fund aligns with your tolerance for risk and your money goals.

A fund's success can also be measured by its annual return, or how much its value has grown over a full year. The annual return is a good way to gauge how stable a company is over time, which can help you decide how to invest, but it doesn't quite capture details of short-term profits or losses, or dividend payouts. Steady cash payouts are not always part of what makes up a company's full annual return.

To find the best Fidelity funds for dividends, we narrowed our search to those they call "income oriented," which pay above-average dividends. We then chose the three with the highest yields.

Here are the best Fidelity funds that pay above-average dividends:

Fidelity Equity Dividend Income Fund

Fidelity Equity Dividend Income Fund (FEQTX) performs at an average rate with regard to annual returns, but it has among the highest yields of all of Fidelity's stock funds. The fund holds mainly large-cap value stocks in U.S. companies on the S&P index, paying above-average yields. Top holdings include Chevron Corp (CVX), Wells Fargo (WFC), and Johnson & Johnson (JNJ). The day yield for FEQTX is %, and the expense ratio is low at %. There is no minimum investment to get started with this fund.

The expense ratio measures the cost it takes to manage and run a fund, against its gross returns. Investors are not liable for paying these fees directly. Rather, the fees are taken out the previous year's earning prior to calculating a net return.

Fidelity Growth and Income Portfolio

Fidelity Growth and Income Portfolio(FGRIX) doesn't often lead the averages in performance but does well at producing dividend income for investors. This fund's holdings are divided between domestic and foreign stock, with a portfolio allocation of about 90% U.S. stocks and 10% foreign stocks.

The focus here is on large-caps, with top holdings like General Electric (GE), Microsoft (MSFT), and Exxon Mobil (XOM). The day yield for FGRIX is %, and the expense ratio is relatively low at %. There is no minimum investment to get started with this fund.

Fidelity Equity Income Fund

Fidelity Equity Income(FEQIX) is consistently among the best Fidelity funds for dividends. It consists of large-cap value stocks with the highest concentration in financials and health care sectors. Top holdings include JP Morgan Chase (JPM), Berkshire Hathaway (BRK/B), and Johnson & Johnson (JNJ). The day yield for FEQIX is % and the expense ratio is at %. There is no minimum investment to get started with this fund.

The Bottom Line

Dividend funds from Fidelity can be wise choices for investors looking for an income stream, or a mix of growth and income. Investors should keep in mind that, although dividend mutual funds may pay good or above-average yields, they are not failsafe. As with all securities, there is always a risk of losing money.

In addition to dividend-paying stock funds, Fidelity has a strong selection of high-yield bond funds. High-yield bond funds also produce income but are less risky in that they consist of safer bonds as opposed to stocks. As always, investors should keep in mind their own tolerance for risk and their investment goals.

The Balance does not provide tax, investment, or financial services or advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk, including the possible loss of principal.

Frequently Asked Questions (FAQs)

How do dividend funds fit in my portfolio?

In general, mutual funds are an important piece of any portfolio. since they provide an easy way to invest in a diversified mix of securities. Dividend funds add an extra layer of benefit in that they pay out each quarter and enable to you further grow your wealth. They're also less risky than growth stock funds.

How are dividend funds divided by shareholders?

Dividends are typically paid out on a per-share basis. So each investor will get the same rate per share, with the total depending on how many shares they own.

Sours: https://www.thebalance.com/best-fidelity-funds-for-dividends
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15 Best Fidelity Funds to Buy Now

Fidelity is one of the most iconic names on Wall Street, and Fidelity funds are among the most respected investment vehicles on the planet. 

The asset manager was established just after World War II and was one of the early leaders in the employer-led retirement plan space after the (k) made its debut roughly 40 years ago. Chances are you've owned a Fidelity product in some account or another across your investing life.

But with more than mutual fund options on top of dozens of exchange-traded products, where do you start if you're looking for the top Fidelity funds for your own personal goals?

Here are 15 of the best Fidelity funds that cover a wide variety of investing approaches. Whether you're interested in growth stocks or income from bonds, you're likely to find something that fits with your portfolio here – sometimes, in the same single fund!

Just keep in mind that all investing decisions are personal, and what works for one investor might not fit in perfectly with another. So always do your own research and act with your own unique goals and risk tolerance in mind.

Data is as of Aug. Dividend yields represent the trailing month yield, which is a standard measure for equity funds. There is no minimum to invest in any of the funds listed here.

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Fidelity Index Fund

concept art
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %, or $ annually on every $10, invested

The U.S. stock market index of choice for the majority of investors is the Fidelity Index Fund (FXAIX, $). When it comes to Fidelity funds, FXAIX is one of the simplest ways to get broad exposure to the domestic equities market. 

As the name implies, it is benchmarked to the S&P Index, which is the top publicly traded corporations listed on U.S. stock exchanges. And its make up gives investors access to all the big names, including Microsoft (MSFT) and Apple (AAPL).

The major drawback, if there is one, is that the S&P is weighted by market capitalization. So trillion-dollar tech stocks like MSFT and AAPL represent more than 10% of the entire portfolio combined. And when you add up the top 10 positions, you get 27% or so of the fund's total assets. In this respect, the idea of the S&P being built by total companies doesn't tell the whole story; a small list of heavy hitters can move this index more than other stocks.

Still, many of these companies are big for a reason and investors might not be turned off by the weightings. Furthermore, while the makeup isn't terribly creative, the fees are incredibly cheap at just a few dollars a year for most investors.

Learn more about FXAIX at the Fidelity provider site.

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Fidelity Nasdaq Composite Index Fund

Nasdaq superimposed over stacks of quarters and skyscrapers
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

If you're looking for an alternative index fund to the S&P , consider the Fidelity Nasdaq Composite Index Fund (FNCMX, $). FNCMX comprises roughly 3, stocks listed on the Nasdaq Composite exchange. 

As most investors probably know, the Nasdaq tends to be populated by more tech-oriented companies than the roughly year old New York Stock Exchange (NYSE). In fact, some of the biggest stocks on Wall Street, including Microsoft, Apple and Amazon.com (AMZN) are all Nasdaq-listed names.

Of course, this tech focus brings with it some challenges. Consider that the top 10 positions in this fund tally 44% of the entire portfolio to make it even more top-heavy than the FXAIX. Also, the tech sector and closely related telecom sector are the top two areas of focus, respectively, accounting for more than 57% of the fund's total assets.

This is not necessarily a bad thing for investors who really like the growth potential of high-tech stocks or the stability of mega-cap Silicon Valley icons. If that's your investing style, this is one of the best Fidelity funds for you. 

Learn more about FNCMX at the Fidelity provider site.

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Fidelity Small Cap Index Fund

tiny piggy banks marching together
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

If you'd rather look past the typical mega-cap stocks that dominate the most prominent index funds, then consider the Fidelity Small Cap Index Fund (FSSNX, $). It is made up of roughly 2, stocks, with more than 87% having market values of roughly $2 billion or less.

Consider current holdings like hydrogen fuel cell company Plug Power (PLUG) or development-stage biopharmaceutical company Novavax (NVAX) as representative examples. Both companies are currently unprofitable as they invest heavily in future growth – but in the last 24 months, PLUG stock is up 1,% or so while NVAX is up 3,%!

Not every small-cap stock is destined for those kinds of gains, of course. These companies have higher risk profiles that also could result in larger potential losses than the more stable blue chips on Wall Street. But you also can score bigger rewards in the long run if the cards fall right.

Learn more about FSSNX at the Fidelity provider site.

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Fidelity Mid Cap Index Fund

arrows hitting bullseye
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

What if rather than go big with Fidelity funds focused on the S&P or Nasdaq, you're looking for those "goldilocks" companies that are neither big nor too small? That's what the Fidelity Mid Cap Index Fund (FSMDX, $) provides, with an aim to invest in mid-cap stocks with market capitalizations that fall between about the $2 billion and $10 billion.

Some stocks get smaller than the low end of that range after declines and some get larger than the high end when they go on a short-term run. However, if those valuations change for a long enough period of time, then the stock will either graduate into a large-cap fund or be demoted to a small-cap fund to keep the strategy in line.

The resulting makeup of this stock fund is quite interesting, and truly diversified thanks to this narrow band of investments in the equity market. Specifically, no sector is worth more than about 20% of the total assets, with technology (%) at the top. Plus, every position is weighted at less than % of the portfolio at present. The top stocks currently are social media firm Twitter (TWTR) and animal healthcare company IDEXX Laboratories (IDXX) at % apiece.

Learn more about FSMDX at the Fidelity provider site.

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Fidelity Select Technology Portfolio

technology concept
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

Speaking of narrow bands of the stock market, some investors might be less interested in sorting stocks by size and instead are interested in specific sectors.

While there is no shortage of tactical ETFs out there, the Fidelity Select Technology Portfolio (FSPTX, $) allows investors a mutual fund to play this high-growth sector – and one that does so in an active way instead of traditional index funds.

Right now, FSPTX owns just stocks. You'll find heavy weightings in fan favorites like Microsoft, but you'll also find $9-billion solar technology firm Sunrun (RUN) among its top 10 positions right now. That's not the typical makeup you'll find in a passive tech ETF.

Of course, fees are a bit steeper than a simple index fund that buys all the Silicon Valley giants. However, Fidelity funds have historically empowered active managers – so if you're concerned about some kind of shakeup in the market, the hands-on approach of FSPTX might provide some peace of mind.

Learn more about FSPTX at the Fidelity provider site.

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Fidelity Select Health Care Portfolio

stethoscope on one-hundred dollar bills
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

Another sector-oriented fund that could be worth a look is the Fidelity Select Health Care Portfolio (FSPHX, $). As many investors know, healthcare is one of the more reliable sectors on Wall Street thanks to a constant flow of "customers" as people age and experience medical issues regardless of the macroeconomic outlook.

And without moralizing about the state of American healthcare, it's important to also acknowledge that inflation in U.S. healthcare costs is equally reliable. Consider that the typical American spends % more on insurance than they did roughly two decades ago, according to data company Clever.

If you want to follow that constant increase in spending, then why not focus on this sector? FSPHX provides a simple and diversified way to do so. The fund owns about total stocks, with top holdings right now including insurance giant UnitedHealthGroup (UNH), as well as mid-sized vascular device company Penumbra (PEN).

Admittedly, this is one of the Fidelity funds featured here that has lagged the broader market over the last year or so as the initial surge in healthcare stocks prompted by the pandemic has abated more recently. However, the fund's manager has been at the helm since and has a lot of experience riding the ups and downs of the sector with an eye on the long term.

Learn more about FSPHX at the Fidelity provider site.

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Fidelity Blue Chip Growth Fund

stack of blue poker chips
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

If you like the notion of active management but want to look beyond sector funds, the Fidelity Blue Chip Growth Fund (FBGRX, $) might be right for you. FBGRX offers a way to get more strategic about your exposure to large U.S. stocks without limiting your approach to just one sector.

This Fidelity fund owns about or so blue-chip stocks. But lest you think this is just a mirror image of the FXAIX, it's important to point out the weightings and makeup are very different, even if many of the same names are on the list. 

Case in point: $billion ride sharing company Lyft (LYFT) cracks FBGRX's top 10 components, whereas, in a typical fund weighted by market capitalization, it would be dwarfed by trillion-dollar Silicon Valley stocks like Apple. Those top 10 components also represent a heck of a lot more of the portfolio in this top-heavy fund, currently at 45% of total assets.

This bias toward a short list of favorites is also evident in the sector breakdown of FBGRX. Of the 11 standard S&P sectors, six of them rate at roughly % weightings or less – with almost 82% of stocks spread across three sectors (technology at %, consumer discretionary at % and communication services at %).

There's obviously more risk when you go all-in on a short list of stocks or sectors. However, based on the fact this fund is up about % in the last five years versus roughly % for the S&P Index, clearly this approach can work when the environment is right.

Learn more about FBGRX at the Fidelity provider site.

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Fidelity Contrafund

big yellow arrow pointing away from smaller white arrows
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

Fidelity Contrafund (FCNTX, $) is one of the big-name funds that has made this asset manager as dominant as it is. Over the last 20 years, Contrafund has regularly outperformed both the Dow Jones Industrial Average and the S&P Index to tack on a % return in that period.

A core holding for almost every long-term, growth-oriented portfolio, the fund holds a focused list of about or so top stocks. And more importantly, it isn't afraid to go with big weightings towards names it believes in.

Specifically, right now social media giant Facebook (FB) and e-commerce king Amazon.com collectively represent almost 19% of the entire portfolio between them. This shows both the blessing and the curse of this approach: while Facebook has put in a solid outperformance against the S&P so far in , AMZN has lagged.

When things go well based on the "secret sauce" that Contrafund deploys via its active-management style, FCNTX can handily exceed the standard passive funds out there. But keep in mind, this is one of the pricier Fidelity funds on this list, with the expenses here at 25 to 30 times the cheapest S&P index funds. Translation: FCNTX's outperformance needs to be consistent for this fund to be worth your while.

Learn more about FCNTX at the Fidelity provider site.

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Fidelity Magellan Fund

person drawing on stock chart board with green arrow pointing up
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

Fidelity Magellan Fund (FMAGX, $) is more focused than the Contrafund, with less than 70 total positions. The approach is very much centered on domestic large-cap stocks. However, there is a smidge of international investments that are included in FMAGX, based on what the managers are interested in right now.

Those managers set the tone for the fund in a big way, as you can imagine. In fact, Magellan had one of the most enviable track records on Wall Street, as it experienced massive growth under the management of the iconic Peter Lynch from to

Unfortunately, Magellan has been out of step with the market lately as it has "only" tacked on about 21% in the last 12 months, compared with more than 30% for the major U.S. stock market indexes. And with an expense ratio that's pretty high, that underperformance is amplified when you layer on fees.

However, its fund manager insists this lagging short-term performance amid the coronavirus recovery trend should not dissuade investors from "longer-term trends in demographics and productivity" that continue to drive his core investing decisions. If you believe that and share this long-term view, then FMAGX might be one of the best Fidelity funds for you.

Learn more about FMAGX at the Fidelity provider site.

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Fidelity International Discovery Fund

global financial markets concept
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

Looking overseas, Fidelity International Discovery Fund (FIGRX, $) is a core international holding for investors wanting growth, but also diversification beyond U.S. markets. Less than 3% of the fund's roughly stock portfolio is made up of domestic companies, with developed markets including Japan (15%) and the U.K. (13%) as the most influential regions.

That means a smattering of foreign but familiar names, including Switzerland-based drugmaker Roche Holding (RHHBY) and German industrial giant Siemens (SIEGY) near the top of the list of holdings. Emerging markets are also represented, accounting for about % of FIGRX's total asset allocation.

It's worth noting that over the last few years, U.S. stocks have handily outperformed the rest of the world. Specifically, Fidelity International Discovery is up just 50% or so since mid, while the S&P has roughly doubled in the same five-year period. 

However, if you don't expect this underperformance to continue or if you simply want to hedge your bets with diversification overseas, this actively managed global fund helps take the guesswork out of looking for international stocks.

Learn more about FIGRX at the Fidelity provider site.

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Fidelity Dividend Growth Fund

stacks of quarters with a plant growing out of them
  • Assets under management: $ billion
  • Dividend yield: %
  • Expenses: %

Another different "flavor" of stock investing is to look for companies that offer income via dividends, instead of just the potential for capital appreciation. Fidelity Dividend Growth Fund (FDGFX, $) offers this approach, with a narrow list of about large-cap dividend payers that the fund's managers think are the best-equipped to deliver long-term income, as well as reliable share price performance.

Right now, top holdings include growth-oriented digital payments giant Visa (V), as well as embattled industrial giant General Electric (GE). Long-term dividend investors might find this second stock less than appealing, given GE's history of dividend cuts since the financial crisis. However, this is a great example of how FDGFX tries to thread the needle between reliable plays like Visa, but also stocks like GE that managers expect to see significant dividend growth in the years ahead based on their projections of the business. And honestly, with GE only paying a penny per share in dividends, it's not like the distributions could get any smaller unless they are killed altogether.

The yield for FDGFX is slightly better than the typical S&P stock, currently sitting at about %. But as the name implies, this Fidelity fund is all about the potential for future dividend growth – so if the strategy pays off, your actual yield will grow over time if things go as planned.

Learn more about FDGFX at the Fidelity provider site.

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Fidelity Investment Grade Bond Fund

income building concept
  • Assets under management: $ billion
  • SEC yield: %*
  • Expenses: %

Another way to generate a steady stream of income from your investment portfolio is to look beyond stocks to bonds. This asset class is much more stable than stocks, meaning investors don't shoulder as much risk of losing principal value. And this stability can come with reliable yields. The trade off, though, is that bond funds don't experience the same potential for growth as equity ones do. 

The Fidelity Investment Grade Bond Fund (FBNDX, $) focuses only on "investment grade" bond issues – that is, loans taken out by the most credit-worthy entities. Top issuers at present include the U.S. Treasury and government-backed mortgage entities like Fannie Mae, along with top-rated corporations like Goldman Sachs (GS). 

Seeing as the chances of Uncle Sam or big megabanks defaulting on their bond debt are incredibly slim, this is one of the Fidelity funds featured here that you can hang on with confidence for the very long term.

There are about 1, different bonds that make up the current portfolio, adding up to a yield of about %. That's not terribly large and only slightly bigger than the S&P at present, but keep in mind that capital preservation is as much the name of the game as income is – and FBNDX has a portfolio that's built to last.

*SEC yields reflect the interest earned after deducting fund expenses for the most recent day period and are a standard measure for bond and preferred-stock funds.

Learn more about FBNDX at the Fidelity provider site.

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Fidelity Strategic Income Fund

building blocks with arrows pointing up
  • Assets under management: $ billion
  • SEC yield: %
  • Expenses: %

Of course, not all investors are willing to trade bigger income potential simply for the greater reliability that investment-grade bonds offer. That's where Fidelity Strategic Income Fund (FADMX, $) comes in, as it is a multisector bond fund that not only looks at the most reliable bonds, but also the next tier down of debt offerings – colloquially referred to as "junk bonds."

As with consumer finance, less credit-worthy borrowers have to pay a higher premium to the lenders in order to offset the risk of them not making their planned payments on time. In the bond market, the investors are the lenders – and the higher-risk borrowers are battered corporations that have seen better days, but still need ready capital to operate.

So, thanks to an eclectic mix of bulletproof bonds from the U.S. Treasury that yield less than 2% and those of small fry consumer finance firm Ally Financial (ALLY) that yield 8%, FADMX more than doubles the potential payday of the prior investment-grade bond fund with its current yield of 2%.

There is greater risk here, of course, but with an experienced team managing this fund, it could be a great fit for those looking at generating a bit more yield than the typical bond fund.

Learn more about FADMX at the Fidelity provider site.

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Fidelity Balanced Fund

stacks of quarters balancing on top of a jenga game
  • Assets under management: $ billion
  • SEC yield: %
  • Expenses: %

If all these Fidelity funds sound interesting in some way but you're having trouble deciding, then why not just go with a one-stop offering via the Fidelity Balanced Fund (FBALX, $)? 

This "asset allocation" fund is not limited to just stocks or bonds, but instead targets a roughly 60% allocation in stocks and a 40% allocation in bonds during a typical market – and builds a holistic portfolio for you. Those stocks are not restricted by hard limits on geography or size, either.

As a great illustration of this, the FBALX portfolio currently holds long-term U.S. Treasury bonds in its top holdings alongside mega-cap insurer UnitedHealthGroup and mid-cap electronic component company Jabil (JBL). That's quite a wide swath of the market to cover!

Interestingly enough, FBALX is one of the more affordable active funds in Fidelity's repertoire – meaning you can get the expertise you're looking for and a hands-on approach to asset allocation without paying out the nose on fees.

Learn more about FBALX at the Fidelity provider site.

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Fidelity Multi-Asset Income Fund

highway sign pointing to stocks and bonds
  • Assets under management: $ billion
  • SEC yield: %
  • Expenses: %

A slightly different approach to an asset allocation portfolio is the Fidelity Multi-Asset Income Fund (FMSDX, $) that prioritizes income potential over the long term. So while the prior Fidelity Balanced Fund yields less than 1% a year thanks to its focus on equities that don't pay dividends, FMSDX generates a whopping 6% yield thanks to a target of 40% to 70% of the portfolio in bonds.

Currently, FMSDX is at the lower end of that range as it is loaded up on equities in response to a rising interest rate environment. But even so, it's throwing off a yield that is about four times the S&P

Be warned, however, that this yield is generated from junk bonds – specifically, 24% of the FMSDX portfolio at present is in "non-investment grade" bonds. As discussed previously, this comes with risk, as distressed companies might pay more in interest, but also carry a higher chance of default. 

Still, if you are willing to take on exposure to less flashy companies like this in exchange for big income, this Fidelity fund could be worth a look.

Learn more about FMSDX at the Fidelity provider site.

Sours: https://www.kiplinger.com/investing/mutual-funds//best-fidelity-funds-to-buy-now
Top 5 WORST Performing Fidelity Mutual Funds 2021

The fund seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the Fidelity High Dividend IndexSM. Normally investing at least 80% of assets in securities included in the Fidelity High Dividend Index and in depository receipts representing securities included in the index. The Fidelity High Dividend Index is designed to reflect the performance of stocks of large and mid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends.

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Sours: https://institutional.fidelity.com/app/funds-and-products/etf/snapshot/FIIS_ETF_FDVV/fidelity-high-dividend-etf.html

Mutual high funds fidelity yield

Income & Real Return Strategy Funds

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

* Previously named Fidelity Multimedia Portfolio

Past performance is no guarantee of future results.

Diversification and asset allocation do not ensure a profit or guarantee against loss.

Fidelity now offers the Fidelity ZERO Large Cap Index Fund (FNILX), Fidelity ZERO Extended Market Index Fund (FZIPX), Fidelity ZERO Total Market Index Fund (FZROX) and Fidelity ZERO International Index Fund (FZILX) available to individual retail investors who purchase their shares through a Fidelity brokerage account.

* Fidelity's goal is to make financial expertise broadly accessible and effective in helping people live the lives they want. With assets under administration of $ trillion, including managed assets of $ trillion as of March 31,

Eligible assets include those invested through Fidelity® Wealth Services, Fidelity® Strategic Disciplines, or a combination of both registered as an individual account, a joint account, or certain types of revocable trusts. Assets in other registration types, such as irrevocable trusts, partnerships, or LLCs, will not be included when determining program eligibility. Please see the program Terms and Conditions and the FAQs for additional information on program operation. Fidelity Rewards+ is not offered as a component of any advisory service or program through Fidelity, including, without limitation, Fidelity® Wealth Services and Fidelity® Strategic Disciplines. While there are no program enrollment fees, eligible accounts are charged an advisory fee.

1. Fidelity Management & Research Company and Fidelity Institutional Asset Management, as of 12/30/ Data is unaudited. These figures reflect the resources of Fidelity Management & Research Company, a U.S. company, and its subsidiaries. Research professionals include portfolio managers, research analysts and research associates.

2. Highly rated funds are defined as those funds that have a 4- or 5-Star Morningstar rating. For each fund, Morningstar calculates a Morningstar RatingTM metric each month by subtracting the return on a day U.S. Treasury Bill from the fund's load-adjusted return for the same period. It is calculated based on a Morningstar risk-adjusted return measure that accounts for variation in a fund’s monthly excess performance (excluding the effect of sales charges, if any), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each broad asset class receive 5 stars, the next % receive 4 stars, the next 35% receive 3 stars, the next % receive 2 stars, and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Although gathered from reliable sources, data completeness and accuracy cannot be guaranteed by Morningstar.

3. You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $ per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the fund’s sponsor, have no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. Fidelity's government and U.S. Treasury money market funds will not impose a fee upon the sale of your shares, nor temporarily suspend your ability to sell shares if the fund's weekly liquid assets fall below 30% of its total assets because of market conditions or other factors.

4. You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $ per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the fund's sponsor, have no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies.

Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets.

The securities of smaller, less well known companies can be more volatile than those of larger companies.

Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies.

Indexes are unmanaged. It is not possible to invest directly in an index.

Sours: https://www.fidelity.com/mutual-funds/fidelity-funds/overview
Top 5 Fidelity Mutual Funds to Buy and Hold (2021)

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