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Selection Criteria for Fund Picks from FidelitySM

Fund Picks from FidelitySM displays funds in broad Morningstar asset classes. Within the asset classes, investment categories identify funds according to their historical investment styles as measured by portfolio statistics and composition over the past three years. Investment categories are represented by Morningstar categories.

Screening criteria

The universe of funds available for consideration in Fund Picks from Fidelity is comprised of Fidelity funds and FundsNetwork® funds available at Fidelity without paying a transaction fee ("NTF funds"). There are additional funds available through FundsNetwork® subject to paying a transaction fee and/or sales load that you may wish to evaluate using Mutual Fund EvaluatorSM.

At the end of each calendar quarter, Fidelity funds and FundsNetwork® NTF funds are independently screened to include only actively managed open-ended funds, with relevant portfolio characteristics data (asset allocation, stock style, bond style), that are open to new investors with a minimum investment of no more than $2,500 (with the exception of $10,000 for Municipal Bond Categories and $25,000 for National Municipal Bond Categories). When more than one share class on the same fund meets the minimum threshold, the lowest minimum share class will be shown. The Funds must also meet a $300 million total net asset threshold except for mid-cap categories, the threshold is $200 million and for small-cap and sector fund categories, the threshold is $100 million. The funds are further screened to include only those funds that have a minimum of three years' performance history. Finally, funds in the bottom three year performance quartile for their respective investment category, are eliminated.

Funds are then selected with the highest three-year risk-adjusted return (Sharpe Ratio) within their respective investment category. The results of these screens are displayed within each investment category in two lists: (1) a list of up to five no-transaction fee Fidelity mutual funds; (2) a list of up to five Fidelity mutual funds and five FundsNetwork® mutual funds which are available at Fidelity without paying a transaction fee.

The performance data featured represents past performance, which is no guarantee of future results. Share price, yield and return will vary and you may have a gain or loss when you sell your shares. Mutual fund performance fluctuates and currently may be significantly lower than stated. Periods of market strength may not be repeated.

Before applying the screening criteria, selected Morningstar categories are modified to include funds with only certain Morningstar principal investment objectives.


Fidelity FundsNetwork® information

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.
As with all your investments through Fidelity, you must make your own determination whether an investment in any particular security or securities is consistent with your objectives, risk tolerance, financial situation, and your evaluation of the security.
Keep in mind investing involves risk. The value of your investments will fluctuate over time and you may gain or lose money.
Fidelity reserves the right to change the funds available without transaction fees and reinstate the fees on any funds. Fidelity will charge a short term trading fee each time you sell or exchange shares of FundsNetwork No Transaction Fee (NTF) funds held less than 60 days (short-term trade). If these funds are held for more than 60 days they may be sold without a short term trading fee. Fidelity funds, money market funds, funds redeemed through the Personal Withdrawal Service, and shares purchased through dividend reinvestment may be sold without this fee. At the time you purchase shares of a fund, those shares will be assigned either a transaction fee (TF) or no transaction fee (NTF) status. When you subsequently sell those shares, any applicable fees will be assessed based on the status assigned to the shares at the time of purchase. The fee will be based on the following schedule:
  • Online: $49.95 or $75. Certain funds will have a transaction fee of $75. To identify any applicable transaction fees associated with the purchase of a given fund, please refer to the "Fees and Distributions" tab on the individual fund page on Fidelity.com.
  • Fidelity Automated Service Telephone (FAST): 25% off representative-assisted rates, Maximum: $187.50, Minimum: $75 
  • Representative-Assisted: 0.75% of principal, Maximum: $250, Minimum: $100
  • In addition, if you place more than 15 short term trades in a 12-month period in your account, Fidelity will charge a transaction fee each time you purchase or exchange shares including automatic investments of FundsNetwork funds (typically available without paying a transaction fee or load) in that account for the following 12 months. Fidelity funds, money market funds, funds redeemed through the Personal Withdrawal Service, and shares purchased through dividend reinvestment are excluded from this fee.
  • Please be aware that certain FundsNetwork funds may be subject to separate and additional redemption fees imposed by the particular fund. Please refer to that fund's current prospectus for details.
In connection with access to, purchase of, and/or maintenance of positions in mutual fund and other investment products ("funds") or platforms, some mutual funds, or their investment affiliates, pay FBS or NFS sales loads and 12b-1 fees described in the prospectus as well as remuneration for providing (i) access to, purchase or redemption of, and/or maintenance of positions in mutual funds and other investment products ("funds"), (ii) platform infrastructure needed to support such funds as well as additional compensation for shareholder services, platform infrastructure support and maintenance, and other programs and/or (iii) a fund's attendance at events for FBS's clients and/or representatives, and opportunities for the fund to promote its products and services. Additional information about the source(s) and amount(s) of compensation as well as other remuneration received by FBS or NFS will be furnished to you upon written request. Fidelity mutual funds are managed by Fidelity Management & Research Company. Fidelity Freedom Funds are managed by Strategic Advisers, Inc., a registered investment advisor and a Fidelity Investments company. Non-Fidelity funds are managed by non-Fidelity entities.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917