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Specialized Funds

Specialized funds focus on nontraditional asset classes that allow you to potentially gain exposure to very narrow segments of the market or very specific investing methodologies.

Reasons to consider specialized funds

  • Pursue specific opportunities
  • Higher potential risk/reward ratio
  • Part of a diversified strategy

Types of specialized funds

Real estate

Real estate funds invest in securities with significant exposure to the real estate market, including mortgage originators and brokers, construction companies, and real estate investment trusts (REITs). Learn more about types of Fidelity real estate funds.

Research real estate funds.

Alternative

Alternative funds can provide unique diversification benefits. That's because alternative investment strategies—like absolute return, market neutral, and commodity and currency-related funds—do not move in tandem with more traditional asset classes, like equities and fixed income. Learn more about alternative funds.

Research alternative funds.

Commodity

Commodity funds invest in raw materials such as agriculture, energy, precious metals, or a combination of raw materials. These funds may invest directly in actual commodities or in commodity-linked derivative instruments. Learn more about types of Fidelity commodity funds.

Research commodity funds.

Inverse and leveraged

These funds seek to deliver the opposite of the performance of an index or benchmark, deliver multiples of the performance of an index or benchmark, or both. As with any mutual fund, investors in leveraged or inverse mutual funds should obtain and carefully read the applicable prospectuses before investing. Learn more about inverse and leveraged funds.

Market neutral

These funds take both long and short positions in different securities. The goal is to create a portfolio that attempts to outperform a chosen benchmark regardless of whether the overall market moves up or down. Learn more about market neutral funds.

Research market neutral funds.

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.

Past performance is no guarantee of future results.

Changes in real estate values or economic conditions can have a positive or negative effect on issuers in the real estate industry, which may affect the fund.
Alternative investment funds can invest in securities that may have a leveraging effect (such as derivatives and forward-settling securities) which may increase market exposure, magnify investment risks, and cause losses to be realized more quickly. These funds may invest in commodity-linked investments which may be more volatile and less liquid than the underlying instruments or measures.
The commodities industry can be significantly affected by commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.
Leveraged and/or inverse mutual funds are complicated instruments that should only be used by sophisticated investors who fully understand the risks involved. Due to the effect of compounding, operating expenses, and daily resets, the performance of a leveraged and/or inverse fund can differ significantly from the performance of the underlying index or benchmark over longer periods of time.
Market neutral funds are complex financial instruments that should only be used by sophisticated investors. While some of the risks are described below, this list is not exhaustive and other risks may exist. Because security selection and active management are such important components of a market neutral strategy, these types of funds tend to have higher-than-average fees. Over time, these fees could detract from long-term returns.
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