Fidelity Fund Portfolios—Income FAQs
How to Change Dividends and Capital Gains Distributions
You must set up distributions to pay into your core account, otherwise, distributions are reinvested and the number of shares in your account will increase.
How did you select the individual mutual funds that make up the portfolio?
The portfolio construction process is composed of a series of three well‐defined steps:
- Identify initial fund candidates for further analysis by screening Fidelity mutual fund universe based on historical performance and risk attributes.
- Select model risk levels and corresponding sample asset mixes from the range of Target Asset Mixes
- Select subset of mutual funds from investment universe to construct a portfolio which seeks to optimize dividend income for a given level of risk
For a more detailed explanation of the portfolio construction process, please see the methodology document (PDF).
What if I choose to buy a subset of the funds in the model and/or replace an existing fund in the model with a different fund?
Fidelity can only assess the stated purpose of the Fidelity Fund Portfolios — Income as displayed. Please ensure that the investments you choose are appropriate for your individual financial situation. The model portfolios are not a recommendation of any particular investment or strategy and other allocations and investments, including non‐Fidelity funds, having similar risk and return characteristics may be available.
What's the minimum initial investment in each fund?
$2,500 is the minimum purchase amount of an individual Fidelity fund used in the models.
These look and sound very similar to the Fidelity Fund Portfolios, how are these different?
Like our Fidelity Fund Portfolios, these Fidelity Fund Portfolios – Income, have a focus on total return over the long run. Unlike our other portfolios, The Fidelity Fund Portfolios – Income have been constructed so as to emphasize interest and dividend income as a component of total return.
How do I implement the Fidelity Fund Portfolios—Income?
The model portfolios are comprised of individual Fidelity mutual funds that would need to be purchased separately. They are not a recommendation of any particular investment or strategy. First you should carefully research any fund prior to making an investment decision. You should also consider other allocations and investments, including non‐Fidelity funds, having similar risk and return characteristics that may be available. Then you will need to log into your account, calculate the amount to be allocated to each fund in the chosen portfolio based on the allocation amounts suggested, and place individual trades for each fund.