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Asset Allocation Funds: Target Allocation

Target allocation funds allow you to choose an asset allocation based on your own risk tolerance.

Reasons to consider target allocation funds

  • A single fund provides exposure to multiple asset classes.
  • Asset allocation remains aligned with your risk tolerance.
  • Single-fund strategy simplifies your financial picture.

These funds combine our expertise in asset allocation and security selection. They offer diversification across multiple asset classes, including domestic and international stocks across varying styles and market capitalization ranges, investment grade and high yield fixed income, and short-term investments. Fidelity also offers seven Asset Manager® funds, with equity exposure ranging from conservative (20%) to aggressive growth (85%).

How Fidelity manages Asset Manager® funds

How to choose a Fidelity Asset Manager fund

Each of our seven Fidelity Asset Manager funds is named for its exposure to stocks. For instance, the Fidelity Asset Manager 20% maintains an equity allocation of around 20%, while the Fidelity Asset Manager 85% maintains an equity allocation of around 85%. Choosing a fund starts with understanding your risk tolerance, time horizon, and investment goals. Because stocks are considered to be more volatile than bonds or short-term investments, the Fidelity Asset Manager 20% may be more appropriate for investors who are less comfortable with risk or have a shorter time horizon, while the Fidelity Asset Manager 85% may be better for those who are more comfortable with risk or have a longer time horizon. You simply select the Asset Manager fund that you believe best meets your needs and Fidelity will do the rest.

Questions?

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.

Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.

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.

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

High yield/non-investment grade bonds involve greater price volatility and risk of default than investment grade bonds.

Leverage can increase market exposure and magnify investment risks.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
* The Fidelity Asset Manager® 85% Fund maintains an asset allocation of 85% equities and 15% bonds. The bond allocation may contain a small percentage of short-term or money market assets.
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