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Asset Allocation Funds

Asset allocation funds combine multiple asset classes in a single portfolio, making them a simple and disciplined way to diversify your investments.

Reasons to consider asset allocation funds

  • Asset class diversification
  • Disciplined, ongoing asset allocation
  • Managed to help meet your needs for income and growth potential

Find asset allocation funds

A portfolio that offers exposure to a mix of different types of assets can help reduce the impact of market volatility, provide a source of income, and offer the potential for capital appreciation.

Fidelity’s asset allocation philosophy

Types of asset allocation funds

Target date funds

Designed to take the guesswork out of saving for retirement. The professionally managed, diversified asset allocation tends to be more aggressive when the target date is many years away, automatically becoming more conservative over time. Learn more about Fidelity’s target date funds, called Fidelity Freedom® Funds1.

Research target date funds.

Target allocation funds

For investors who want a fund that maintains a target asset allocation that reflects the tolerance for risk with which they are comfortable. Funds contain a professionally managed allocation of stocks, bonds, and short-term investments. Learn more about types of target allocation funds.

Research target allocation funds.

Income and real return strategies

For investors seeking a combination of income and total return, each fund focuses on one component of an approach to investing for income: U.S. and non-U.S. bonds; dividend-yielding stocks and other non-bond sources; and types of investments that have historically outperformed inflation, such as commodities and real estate. Learn more about Fidelity's income and real return strategies called Fidelity Strategic Funds.

Income replacement funds

Designed for those relying on a portion of their savings to help meet retirement expenses, these funds are managed to convert savings into a regular stream of monthly income that is intended to last for a set time period. Learn more about Fidelity Income Replacement FundsSM.

Research income replacement funds.

World allocation funds

For investors who want global investment exposure in a single fund. These funds give managers the flexibility to invest in a range of securities at their discretion in order to take advantage of opportunities around the world. Learn more about Fidelity world allocation funds.

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

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.

The commodities industry can be significantly affected by commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.

Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry.

Each Income Replacement Funds' investment objective is intended to support a payment strategy through the Smart Payment ProgramSM (“SPP”). Monthly payments may not keep pace with inflation, will fluctuate year over year and will result in the gradual liquidation of an investment in the fund by its horizon date. As with any mutual fund, withdrawals will reduce the investment balance and future returns are not earned on amounts withdrawn. The funds and SPP may not be appropriate for all investors. Please consult the fund's prospectus for more details.
Performance of the Fidelity Income Replacement Funds depends on that of their underlying Fidelity funds. These funds are subject to the volatility of the financial markets in the U.S. and abroad and may be subject to the additional risks associated with investing in high yield, small cap and foreign securities.
Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets.
1. Fidelity Freedom Funds are designed for investors expecting to retire around the year indicated in each fund’s name. When choosing a Freedom Fund, investors should consider whether they anticipate retiring significantly earlier or later than age 65 even if such investors retire on or near a fund’s approximate target date. There may be other considerations relevant to fund selection and investors should select the fund that best meets their individual circumstances and investment goals. Except for the Freedom Income Fund, the funds' asset allocation strategy becomes increasingly conservative as it approaches the target date and beyond. Ultimately, they are expected to merge with the Freedom Income Fund. The investment risks of each Fidelity Freedom Fund change over time as its asset allocation changes. They are subject to the volatility of the financial markets, including 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, commodity-related, foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates.
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 90-day U.S. Treasury Bill from the fund’s load-adjusted return for the same period, and then adjusting this excess return for risk. The top 10% of funds in each broad asset class receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% 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.

Past performance is no guarantee of future results.