What it invests in: The manager allocates the fund's assets among domestic and foreign stocks, bonds, and short-term and money market instruments, either through direct investment or by investing in Fidelity central funds that hold such investments. The fund seeks to maintain a neutral mix over time of 20% stocks, 50% bonds, and 30% short-term and money market instruments. The fund's allocations may be adjusted gradually within the following ranges: stocks from 10% to 30%, bonds from 40% to 60%, and short-term and money market instruments from 10% to 50%. Fund allocations are adjusted based on the manager's regular review of the fund's assets in order to favor investments believed to provide a more favorable outlook for achieving the fund's objectives. The fund may invest in securities of domestic and foreign issuers. Stock values fluctuate in response to the activities of individual companies, and to general market and economic conditions. Bond values fluc- tuate based on changes in interest rates and in the credit quality of the issuer. Share price and return will vary.
Who might want to invest: Someone who wants current income, as well as the opportunity to benefit from rises in the stock market. Someone who wants to diversify among stocks, bonds, and short-term and money market instruments, and other types of securities.
Fidelity Capital Appreciation Fund Fund code: 00307 What it is: A growth mutual fund. Goal: Seeks to provide capital appreciation.
What it invests in: Primarily invests in common stocks. The fund may invest in securities of domestic and foreign issuers. At any given time, the manager may tend to buy "growth" stocks or "value" stocks, or a combination of both types. In buying and selling securities for the fund, the manager relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Share price and return will vary.
Who might want to invest:
Someone seeking to diversify a conservative portfolio with a more aggressive investment. Someone who is looking for long-term growth potential rather than current income, and who can stay invested over the long term.
Fidelity Freedom Income Fund® Fund code: 00369 What it is: An asset allocation mutual fund.
Goal: The fund is designed for those investors already in retirement. The fund seeks to provide high current income and, as a secondary objec- tive, some capital appreciation. Additionally, it seeks to maintain a stable asset allocation from year to year.
What it invests in: Each Freedom fund invests in a diversified portfolio of Fidelity mutual funds. The fund's manager selects underlying funds from those named in the fund's prospectus. Each underlying Fidelity mutual fund is separately managed in accordance with its own investment objective and, depending on that objective, may invest in domestic and foreign equities, investment-grade and/or high-yield fixed-income securities, and short-term investments. Fidelity Freedom Income Fund invests approximately 40% in bond funds, 40% in mutual funds with short-term investments goals, and 20% in domestic equity funds. The fund is subject to the volatility of the financial markets, including that of equity and fixed-income investments. Fixed-income investments entail issuer default and credit risk, inflation risk, and interest-rate risk (as interest rates rise, bond prices usually fall, and vice versa). This effect is usually more pronounced for longer-term securities. Principal invested is not guaranteed at any time, including at or after the fund's target retirement date.
Who might want to invest: Someone who is already in retirement.
Someone who wants a simple approach for choosing retirement investment options.
Strategic Advisers, Inc., a subsidiary of FMR LLC, manages the Fidelity Freedom Funds®. The investment risk of each Fidelity Freedom Fund changes over time as the fund's asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed-income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds' target dates.
Fidelity Freedom 2000 Fund® Fund code: 00370 What it is: An asset allocation mutual fund.
Goal: The fund is designed for investors expecting to retire around the year indicated in the fund name. The fund seeks high total return until its target retirement date. Thereafter, the fund's objective will be to seek high current income and, as a secondary objective, capital apprecia- tion.
For more information, visit www.fidelity.com/atwork or call 1-800-343-0860.