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Fidelity's Broad Range of Choices for Conservative Investors

Many investors are looking for conservative investments with the potential for lower volatility. Fidelity can help.

Fidelity offers Treasury and government money market funds, as well as a range of securities issued by the U.S. Treasury. Choose between auction/new issues and secondary market opportunities.

Fidelity also offers FDIC–insured brokered certificates of deposit (CDs). Choose the maturity that suits you, from 3 months to 10 years, from an inventory of original issue or secondary market certificates.1

Both Treasury securities purchased at auction and new-issue CDs with a term to maturity of five years or less are eligible for the Auto Roll Program. This service allows you to have the proceeds of the principal from a maturing Treasury or CD to automatically be used to purchase the same type of security with a similar maturity and coupon payment frequency.

Another option from Fidelity is securities issued by government agencies. Although not guaranteed by the U.S. Government in the way that U.S. Treasury securities are, Agency/GSE bonds are securities from Government Sponsored Enterprises such as Fannie Mae, Freddie Mac and the Federal Home Loan Banks.2 Choose from an inventory of original issues or secondary issues.

If liquidity is a goal, consider U.S. Treasury money market funds, which give you convenient daily access to U.S. Treasury securities with a range of short maturities. U.S. Government Money Market Funds normally invest their assets in U.S. Treasury and government agency debt, as well as repurchase agreements involving those securities.

Prime (also known as general purpose) money market mutual funds may invest in securities of corporations as well as government entities.

Review all Fidelity money market funds. From time to time the regulatory requirements for certain types of money market funds may change. Learn more about money market mutual fund regulatory developments and upcoming changes for certain Fidelity money market mutual funds.

For investors with a time frame of at least 6-12 months, learn more about: Fidelity Conservative Income Bond Fund.

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.
1. For purposes of FDIC insurance coverage limits, all depository assets of the account holder at the institution that issued the CD will generally count toward the applicable aggregate limit for each applicable category of account. FDIC insurance does not cover market losses, including those resulting in loss of principal. For details on FDIC insurance limits, see www.fdic.gov. Redeeming a brokered CD prior to maturity is subject to market conditions and risks, including loss of principal. Some of Fidelity’s inventory of CDs available in the secondary market may not be FDIC insured. CDs with step-down and/or call provisions may be less favorable than traditional CDs without these features. The FDIC insurance covers up to $250,000 per institution per category of account, or up to $250,000 in qualifying retirement accounts. Note that FDIC insurance only covers the principal amount of the CD and any accrued interest. In some instances, CD's may be purchased on the secondary market at a price which reflects a premium to their principal value. This premium is ineligible for FDIC insurance.
2. It is important to note that unlike U.S. Treasury securities, Government Agency securities are not backed by the full faith and credit of the U.S. Government. Certain Government Agencies are going through a period of business model review by Congress which may lead to higher volatility than they have experienced in the past.
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.
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 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.

core position

the core position is automatically established when an account is opened and is used for processing cash transactions and holding uninvested cash in your account. when a security is sold or a deposit is received, the proceeds are deposited into the position; when a security is bought or a payment is made, cash in the core position is used to pay for the trade