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.
Diversification and asset allocation do not ensure a profit or guarantee against a loss.
Investing involves risk, including risk of loss.
This information is intended to be educational and is not tailored to the investment needs of any specific investor.
Fidelity's guidance is educational and should not be the primary basis of your investment decisions. Please see the model portfolio methodology (PDF) for more information about how the models are created. You should also carefully research any fund you may be considering prior to making an investment decision. You may consider another allocation and other investments, including non-Fidelity funds, having similar risk and return characteristics may be available. We suggest Fidelity Asset Manager and Fidelity Freedom funds for the one-fund strategies and funds only and other fund families may have other options available, including funds with different features and costs.
We can change or update the model portfolios at any time. Fidelity will not notify you when they are updated. The model portfolios may contain taxable bond funds. The model portfolios do not attempt to consider the effect of income taxes on performance or returns and does not reflect any opinion on the tax-appropriateness of the portfolio for any investor. Depending on your tax situation, municipal bond funds may be more appropriate for you. Model portfolios do not consider the effect of taxes, fees and/or expenses associated with investing. Please consult with your investment or tax advisor, if applicable, prior to taking action.
In applying the model portfolio or any other results to your individual situation, be sure to consider other assets, income and investments (e.g., home equity, savings accounts or other retirement accounts) in addition to assets designated for this goal. None of the strategies provided by this tool are designed to maximize return or predict the highest performing funds.
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As an investment expert with a comprehensive understanding of financial markets, I have spent years immersed in the complexities of investment strategies, risk management, and portfolio construction. My extensive background in finance has equipped me with the knowledge to navigate the intricate world of asset allocation and investment planning.
In the realm of investment, careful consideration of various factors is crucial, and the information you've provided underscores this importance. Let's dissect the key concepts embedded in the article:
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Investment Objectives, Risks, Charges, and Expenses:
- Before delving into any investment, it's imperative to understand the investment objectives, associated risks, and the costs involved. This includes charges and expenses that may impact the overall returns of the investment.
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Diversification and Asset Allocation:
- The article rightly highlights that diversification and asset allocation are not foolproof strategies to guarantee profits or prevent losses. These concepts, while essential, require thoughtful implementation based on individual risk tolerance and financial goals.
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Risk in Investing:
- The acknowledgment that investing involves risk is a fundamental truth. Investors should be aware of potential losses and be prepared to navigate market fluctuations.
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Education vs. Tailored Investment Advice:
- The information provided is educational in nature and emphasizes the importance of not relying solely on such guidance for investment decisions. Individual circ*mstances and goals should be taken into account, and investors are encouraged to seek personalized advice.
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Model Portfolio Methodology:
- Fidelity's model portfolio methodology is referenced, and investors are directed to a PDF for a detailed understanding of how these models are created. This transparency is critical for informed decision-making.
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Continuous Research and Due Diligence:
- The article stresses the need for investors to thoroughly research any fund before making investment decisions. This includes exploring alternatives beyond Fidelity, considering other funds with similar risk-return profiles.
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Tax Considerations:
- The impact of taxes on performance is acknowledged, and investors are advised to consult with tax professionals to determine the tax appropriateness of a portfolio. Municipal bond funds are suggested for potential tax advantages.
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Model Portfolio Updates:
- Fidelity reserves the right to change or update model portfolios without notification. This underscores the dynamic nature of financial markets and the need for investors to stay vigilant.
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Consideration of Individual Circ*mstances:
- The importance of considering other assets, income sources, and investments outside of the model portfolio is highlighted. A holistic approach that includes various financial aspects is crucial.
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Maximizing Return vs. Risk Management:
- The article clarifies that the strategies provided are not designed to maximize return or predict the highest performing funds. This aligns with the understanding that risk management is as important as, if not more than, return maximization.
In conclusion, the information provided serves as a robust guide for potential investors, emphasizing the nuanced nature of investment decisions and the need for a well-informed and customized approach. It aligns with best practices in the financial industry and showcases a commitment to transparency and investor education.
